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Northrop Grumman is setting itself up for a strong future, according to Deutsche Bank. The bank upgraded the aerospace and defense stock to buy from hold. It also raised its price target to $700 from $575, implying a gain of 13%. NOC YTD mountain NOC YTD chart Analyst Scott Deuschle pointed to strong expected free cash flow growth after 2028. This should happen after the Northrop Grumman B-21 Raider stealth bomber flips from cash losses to cash profit around 2029 and 2030. The Northrop Grumman Sentinel program will also move to higher margin and growth production, he said. “Further supporting our argument on the multiple, we think NOC remains the name in our defense coverage arguably least exposed to low-end disruption risk, mitigating risks to the multiple as newer entrants make headway,” Deuschle added. The analyst also cited unique catalyst opportunities for the stock in the second half of this year. This could include potential contract awards which would accelerate B-21 production, alongside a potential award for F/A-XX, a stealth fighter for the Navy. Northrop Grumman is next expected to report earnings before the market opens on Oct. 21. Deutsche Bank forecasts the company’s third-quarter earnings to come in line with expectations, while its initial 2026 look will support current sell-side consensus. Shares of Northrop Grumman have surged 32% this year, closing at $621.63 on Tuesday afternoon. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
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