NORTHROP GRUMMAN: CITIGROUP LOWERS TARGET PRICE FROM $807 TO $742
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 23 2026
0mins
Should l Buy NOC?
Source: moomoo
- Target Price Adjustment: Citigroup has reduced the target price for Northrop Grumman from $807 to $742.
- Market Impact: This adjustment reflects changes in market conditions and expectations for Northrop Grumman's performance.
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Analyst Views on NOC
Wall Street analysts forecast NOC stock price to rise
13 Analyst Rating
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 579.480
Low
630.00
Averages
684.08
High
770.00
Current: 579.480
Low
630.00
Averages
684.08
High
770.00
About NOC
Northrop Grumman Corporation is a global aerospace and defense technology company. Its segments include Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. Aeronautics Systems is engaged in the design, development, production, integration, sustainment and modernization of military aircraft systems for the United States Air Force, the United States Navy, other United States government agencies, and international customers. Defense Systems is engaged in the design, engineering, development, integration, and manufacturing of deterrent systems, advanced tactical weapons, and missile defense solutions. Mission Systems is a provider of mission solutions and multifunction systems. Its products and services include command, control, communications and computers, and reconnaissance (C4ISR) systems. Space Systems delivers end-to-end mission solutions through the design, development, integration, production and operation of space, missile defense, and launch systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Northrop Grumman's Future Growth Potential Amid Market Challenges
- Earnings Growth Outlook: Northrop Grumman is expected to accelerate earnings growth to 8% over the next three years, up from a steady 1% growth rate over the past three years, indicating strong demand and market confidence in the defense sector.
- Free Cash Flow Forecast: The company anticipates free cash flow to reach $3.1 billion to $3.5 billion by 2026, with expectations to double by 2028, providing robust support for shareholder returns and enhancing investor confidence.
- Dividend Growth Continuity: Northrop Grumman has increased its dividend for 22 consecutive years, with another hike anticipated in May 2025, demonstrating the company's commitment to stable cash flow and shareholder returns.
- Market Challenges and Opportunities: Despite facing market challenges such as the war in Iran, which has led to a nearly 15% decline in stock price over the past three months, Northrop Grumman's investments in aerospace and defense technology and substantial order backlog provide a foundation for future growth.
See More
Kratos Defense Sees Significant Contract Growth
- Drone Business Boom: Kratos's flagship Valkyrie unmanned combat vehicle secured a $231.5 million contract from the U.S. Marine Corps, reflecting strong demand in the drone market, with production expected to ramp up to 40 units per year by the end of 2027, enhancing competitive positioning.
- New Product Launch: The successful initial flights of the Mk1 Firejet tactical drone in April, priced under $500,000, align with the Department of Defense's demand for low-cost drones, likely driving further growth in the military sector for Kratos.
- Improved Financial Performance: In 2025, Kratos achieved a 19% revenue increase to $1.3 billion and a 35% rise in net income to $22 million, indicating that substantial investments in R&D are beginning to yield positive results, despite still modest income levels.
- Optimistic Future Outlook: Management forecasts revenue of $1.6 billion to $1.7 billion for 2026, and with the recent $446.8 million contract with the Space Force, Kratos is well-positioned to potentially exceed these expectations, further solidifying its standing in the defense market.
See More
Kratos Increases Valkyrie Drone Production Significantly
- Production Capacity Increase: Kratos plans to ramp up its Valkyrie drone production from eight to 40 units per year by the end of 2027, demonstrating a strong response to market demand and significantly enhancing its competitive position in the drone market.
- Strong Financial Performance: In 2025, Kratos reported a 19% increase in revenue and a 35% rise in net income, reaching $1.3 billion and $22 million respectively, indicating that the company's investments in R&D and market expansion are beginning to pay off.
- Key Contract Wins: Recently, Kratos secured a $447 million contract with the U.S. Space Force, which is expected to further drive revenue growth and potentially exceed management's revenue guidance of $1.6 to $1.7 billion for 2026.
- New Product Development: Kratos completed initial flights of its Mk1 Firejet tactical drone in April, priced under $500,000, aligning with the Department of Defense's demand for low-cost drones, which is expected to create new market opportunities for the company.
See More
U.S. Demand for Hypersonic Test Platforms Surges
- Infrastructure Shortage: The U.S. Department of Defense's procurement patterns indicate that the development of hypersonic weapons and propulsion systems is outpacing the construction of necessary testing infrastructure, creating a pressing demand that Starfighters Space's F-104 aircraft can fulfill.
- Market Opportunity: Starfighters Space announced the immediate availability of its F-104 Starfighter as an aerodynamic test platform for the U.S. defense and aerospace community, filling a current gap in testing capacity and expected to attract more clients.
- Expanding Customer Base: Starfighters Space's clientele includes prominent companies such as Lockheed Martin, GE, and the U.S. Air Force Research Laboratory, with the company's operational footprint expanding to Midland International Air & Space Port in Texas, enhancing its market competitiveness.
- Technical Advantage: The F-104 platform can replicate the aerodynamic conditions of the first 30 seconds of a rocket launch, providing a testing environment that closely resembles actual flight, thereby improving the accuracy and reliability of tests by narrowing the gap between laboratory simulations and real-world conditions.
See More
U.S. Accelerates Development of Hypersonic Test Platforms
- Surging Hypersonic Demand: The U.S. Department of Defense's procurement patterns indicate that the development of hypersonic weapons and propulsion systems is outpacing the construction of necessary testing infrastructure, prompting Starfighters Space to swiftly respond by offering its F-104 aircraft as a testing platform.
- Infrastructure Lag: NASA's recent completion of its first new wind tunnel in over 40 years highlights the emphasis on wind tunnel construction in defense budgets, while Starfighters' F-104 platform can provide immediate testing capabilities to bridge this infrastructure gap.
- Solid Customer Base: Starfighters Space boasts a client list that includes major players like Lockheed Martin and the U.S. Air Force Research Laboratory, underscoring its strong market position in the defense and aerospace sectors, and it is expected to benefit from the upcoming demand for hypersonic testing.
- Operational Footprint Expansion: With operational bases established at Kennedy Space Center in Florida and Midland International Air & Space Port in Texas, Starfighters enhances its competitive edge in the hypersonic testing market, ensuring it can meet the growing customer demand.
See More
Northrop Grumman's Growth Potential Amid Market Challenges
- Market Underperformance: As of April 28, the iShares Aerospace and Defense ETF has declined nearly 9%, while Northrop Grumman's stock has dropped almost 15% during the same period, indicating that defense stocks have not performed as expected amid the ongoing war in Iran, which negatively impacts investor confidence.
- Earnings Growth Outlook: Although Northrop's earnings growth rate was only 1% over the past three years, it is expected to accelerate to 8% over the next three years, providing investors with sustainable growth potential, particularly driven by its new weapon systems and the refresh of the B-21 fleet.
- Strong Cash Flow: Northrop forecasts free cash flow of $3.1 billion to $3.5 billion by 2026, with expectations to double by 2028, which strongly supports shareholder buybacks and dividends, enhancing its long-term investment appeal.
- Consistent Dividend Growth: Northrop has increased its dividend for 22 consecutive years, and following the last hike in May 2025, another increase may be on the horizon, indicating that with a substantial order backlog and a bright cash flow outlook, dividends will be a key component of its long-term compounding story.
See More
Northrop Grumman's Future Growth Potential Amid Market Challenges
- Earnings Growth Outlook: Northrop Grumman is expected to accelerate earnings growth to 8% over the next three years, up from a steady 1% growth rate over the past three years, indicating strong demand and market confidence in the defense sector.
- Free Cash Flow Forecast: The company anticipates free cash flow to reach $3.1 billion to $3.5 billion by 2026, with expectations to double by 2028, providing robust support for shareholder returns and enhancing investor confidence.
- Dividend Growth Continuity: Northrop Grumman has increased its dividend for 22 consecutive years, with another hike anticipated in May 2025, demonstrating the company's commitment to stable cash flow and shareholder returns.
- Market Challenges and Opportunities: Despite facing market challenges such as the war in Iran, which has led to a nearly 15% decline in stock price over the past three months, Northrop Grumman's investments in aerospace and defense technology and substantial order backlog provide a foundation for future growth.
See More
Kratos Defense Sees Significant Contract Growth
- Drone Business Boom: Kratos's flagship Valkyrie unmanned combat vehicle secured a $231.5 million contract from the U.S. Marine Corps, reflecting strong demand in the drone market, with production expected to ramp up to 40 units per year by the end of 2027, enhancing competitive positioning.
- New Product Launch: The successful initial flights of the Mk1 Firejet tactical drone in April, priced under $500,000, align with the Department of Defense's demand for low-cost drones, likely driving further growth in the military sector for Kratos.
- Improved Financial Performance: In 2025, Kratos achieved a 19% revenue increase to $1.3 billion and a 35% rise in net income to $22 million, indicating that substantial investments in R&D are beginning to yield positive results, despite still modest income levels.
- Optimistic Future Outlook: Management forecasts revenue of $1.6 billion to $1.7 billion for 2026, and with the recent $446.8 million contract with the Space Force, Kratos is well-positioned to potentially exceed these expectations, further solidifying its standing in the defense market.
See More
Kratos Increases Valkyrie Drone Production Significantly
- Production Capacity Increase: Kratos plans to ramp up its Valkyrie drone production from eight to 40 units per year by the end of 2027, demonstrating a strong response to market demand and significantly enhancing its competitive position in the drone market.
- Strong Financial Performance: In 2025, Kratos reported a 19% increase in revenue and a 35% rise in net income, reaching $1.3 billion and $22 million respectively, indicating that the company's investments in R&D and market expansion are beginning to pay off.
- Key Contract Wins: Recently, Kratos secured a $447 million contract with the U.S. Space Force, which is expected to further drive revenue growth and potentially exceed management's revenue guidance of $1.6 to $1.7 billion for 2026.
- New Product Development: Kratos completed initial flights of its Mk1 Firejet tactical drone in April, priced under $500,000, aligning with the Department of Defense's demand for low-cost drones, which is expected to create new market opportunities for the company.
See More
U.S. Demand for Hypersonic Test Platforms Surges
- Infrastructure Shortage: The U.S. Department of Defense's procurement patterns indicate that the development of hypersonic weapons and propulsion systems is outpacing the construction of necessary testing infrastructure, creating a pressing demand that Starfighters Space's F-104 aircraft can fulfill.
- Market Opportunity: Starfighters Space announced the immediate availability of its F-104 Starfighter as an aerodynamic test platform for the U.S. defense and aerospace community, filling a current gap in testing capacity and expected to attract more clients.
- Expanding Customer Base: Starfighters Space's clientele includes prominent companies such as Lockheed Martin, GE, and the U.S. Air Force Research Laboratory, with the company's operational footprint expanding to Midland International Air & Space Port in Texas, enhancing its market competitiveness.
- Technical Advantage: The F-104 platform can replicate the aerodynamic conditions of the first 30 seconds of a rocket launch, providing a testing environment that closely resembles actual flight, thereby improving the accuracy and reliability of tests by narrowing the gap between laboratory simulations and real-world conditions.
See More
U.S. Accelerates Development of Hypersonic Test Platforms
- Surging Hypersonic Demand: The U.S. Department of Defense's procurement patterns indicate that the development of hypersonic weapons and propulsion systems is outpacing the construction of necessary testing infrastructure, prompting Starfighters Space to swiftly respond by offering its F-104 aircraft as a testing platform.
- Infrastructure Lag: NASA's recent completion of its first new wind tunnel in over 40 years highlights the emphasis on wind tunnel construction in defense budgets, while Starfighters' F-104 platform can provide immediate testing capabilities to bridge this infrastructure gap.
- Solid Customer Base: Starfighters Space boasts a client list that includes major players like Lockheed Martin and the U.S. Air Force Research Laboratory, underscoring its strong market position in the defense and aerospace sectors, and it is expected to benefit from the upcoming demand for hypersonic testing.
- Operational Footprint Expansion: With operational bases established at Kennedy Space Center in Florida and Midland International Air & Space Port in Texas, Starfighters enhances its competitive edge in the hypersonic testing market, ensuring it can meet the growing customer demand.
See More
Northrop Grumman's Growth Potential Amid Market Challenges
- Market Underperformance: As of April 28, the iShares Aerospace and Defense ETF has declined nearly 9%, while Northrop Grumman's stock has dropped almost 15% during the same period, indicating that defense stocks have not performed as expected amid the ongoing war in Iran, which negatively impacts investor confidence.
- Earnings Growth Outlook: Although Northrop's earnings growth rate was only 1% over the past three years, it is expected to accelerate to 8% over the next three years, providing investors with sustainable growth potential, particularly driven by its new weapon systems and the refresh of the B-21 fleet.
- Strong Cash Flow: Northrop forecasts free cash flow of $3.1 billion to $3.5 billion by 2026, with expectations to double by 2028, which strongly supports shareholder buybacks and dividends, enhancing its long-term investment appeal.
- Consistent Dividend Growth: Northrop has increased its dividend for 22 consecutive years, and following the last hike in May 2025, another increase may be on the horizon, indicating that with a substantial order backlog and a bright cash flow outlook, dividends will be a key component of its long-term compounding story.
See More
