Wells Fargo upgrades Northrop Grumman to Overweight, raises price target to $595

As previously reported, Wells Fargo analyst Matthew Akers upgraded Northrop Grumman (NOC) to Overweight from Equal Weight with a price target of $595, up from $505, where the firm sees the most attractive portfolio in defense, with B-21/Sentinel driving growth above peers into the ’30s, likely protected by the new administration. Northrop Grumman supplied less material to Ukraine vs peers, and should be less impacted as the conflict hopefully draws to a close, Wells adds. The firm also says free cash flow likely doubles through 2028 on lower investment, better pension and less R&D tax hit. Wells sees catalyst coming in around April when FY26 budget likely supports its programs.