Northrop Grumman initiated with a Buy at Truist

Truist initiated coverage of Northrop Grumman (NOC) with a Buy rating and $544 price target The firm believes Northrop’s recent 18% pullback off its late 2024 high “has created a compelling entry point.” Department of Government Efficiency related fears are overblown, as investors must realize that this is not “Sequestration 2.0,” and with the threat level remaining elevated, defense spending will continue to rise in the coming periods, the analyst tells investors in a research note. Truist thinks Northrop’s anchor nuclear triad B-21 Raider and Sentinel ground based strategic deterrent programs will provide stability and growth which should be augmented by robust missile and munition demands.