European Defense Stocks Decline: European defense stocks saw a significant drop of nearly 6% this week due to calls for peace negotiations in Ukraine and Gaza, impacting companies like Rheinmetall, Renk, Leonardo, and Saab.
U.S. Defense ETFs Perform Better: In contrast, U.S.-listed defense ETFs such as ITA, XAR, and PPA have shown more stability, with ITA rising over 33% this year, benefiting from consistent Pentagon budgets and long-term contracts.
Political Vulnerability of European Defense: The European defense sector is more susceptible to political news, while the U.S. defense industry enjoys robust support from multi-decade procurement cycles, making it less volatile.
Long-Term Spending Outlook: Experts believe that international defense budgets will remain stable despite potential reductions in conflict, with NATO countries pressured to maintain or increase spending levels, favoring U.S. defense investments.
NOC
$568.72+Infinity%1D
Analyst Views on NOC
Wall Street analysts forecast NOC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOC is 690.82 USD with a low forecast of 630.00 USD and a high forecast of 770.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
Wall Street analysts forecast NOC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOC is 690.82 USD with a low forecast of 630.00 USD and a high forecast of 770.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Buy
3 Hold
0 Sell
Strong Buy
Current: 575.790
Low
630.00
Averages
690.82
High
770.00
Current: 575.790
Low
630.00
Averages
690.82
High
770.00
Morgan Stanley
Kristine Liwag
Overweight
downgrade
$720 -> $714
2025-12-16
New
Reason
Morgan Stanley
Kristine Liwag
Price Target
$720 -> $714
2025-12-16
New
downgrade
Overweight
Reason
Morgan Stanley analyst Kristine Liwag lowered the firm's price target on Northrop Grumman to $714 from $720 and keeps an Overweight rating on the shares. The firm views Aerospace and Defense as attractive going into 2026 as demand continues to outpace supply growth, the analyst tells investors in a year-ahead note for the group.
Alembic Global
Peter Skibitski
Neutral -> Overweight
upgrade
$662
2025-12-15
New
Reason
Alembic Global
Peter Skibitski
Price Target
$662
2025-12-15
New
upgrade
Neutral -> Overweight
Reason
Alembic Global analyst Peter Skibitski upgraded Northrop Grumman to Overweight from Neutral with a $662 price target.
Citi
initiated
$654
2025-12-11
Reason
Citi
Price Target
$654
2025-12-11
initiated
Reason
Citi initiated coverage of Northrop Grumman with a Buy rating and $654 price target. The firm launched coverage on 24 stocks in the aerospace and defense sector, saying the group faces a "number of megatrends" across commercial aerospace, defense, shipbuilding, and space. Citi sees these trends creating at least one trillion-dollar market cap company in the coming years. GE Aerospace could get there in as little as five years, Citi contends. The firm calls RTX "the Marquee Megatrend stock" and believes Boeing is an "unusually attractive mega-cap turnaround" story. The analyst expects improving trends in Q4 and continued momentum in Q1 for the sector.
BNP Paribas Exane
Matthew Akers
Outperform
initiated
$710
2025-11-18
Reason
BNP Paribas Exane
Matthew Akers
Price Target
$710
2025-11-18
initiated
Outperform
Reason
BNP Paribas Exane analyst Matthew Akers initiated coverage of Northrop Grumman with an Outperform rating and $710 price target.
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.
