UBS Maintains Buy Rating on Northrop Grumman with $690 Price Target

UBS analyst Gavin Parsons reiterated a Buy rating for Northrop Grumman with a $690.00 price target, despite the company's shares opening at $584.00. Parsons has a 68.18% success rate and an average return of 9.4%. The analyst consensus is a Moderate Buy with an average price target of $615.47, representing a 5.39% upside. NOC market cap is $83.61B and has a P/E ratio of 21.47.

UBS analyst Gavin Parsons reiterated his Buy rating for Northrop Grumman (NYSE:NOC) with a price target of $690.00, despite the stock opening at $584.00 on July 2, 2025. Parsons' recommendation is based on the company's strong fundamentals and positive outlook in the aerospace and defense sector. The analyst has a 68.18% success rate and an average return of 9.4% [1].

The overall analyst consensus for Northrop Grumman remains a Moderate Buy, with an average price target of $615.47, representing a 5.39% upside from the current price. This consensus is derived from the mean average of ratings from 18 Wall Street analysts who have issued ratings for the stock in the last 12 months. Out of these, 9 analysts have given a hold rating, 8 a buy rating, and 1 a strong buy rating [1].

Northrop Grumman's market capitalization stands at $83.61 billion, with a price-to-earnings (P/E) ratio of 21.47. The company's shares have been performing relatively stable, with a 12-month low of $426.24 and a 12-month high of $594.68. The stock has a current ratio of 1.04, a quick ratio of 0.93, and a debt-to-equity ratio of 0.98 [2].

In recent quarters, Northrop Grumman has shown robust financial health, reporting earnings per share (EPS) of $7.11 for the latest quarter, which exceeded the consensus estimate of $6.84 by $0.27. The company also reported revenue of $10.35 billion during the same period, surpassing analyst estimates of $10.15 billion. The aerospace company's return on equity (ROE) was 25.52%, and the net margin was 9.74% [2].

Analysts have been generally positive about Northrop Grumman, with several firms raising their price targets and ratings in recent months. For instance, Susquehanna and Bank of America have increased their price targets to $650.00 and $650.00, respectively, while Robert W. Baird raised their target to $565.00 [2].

Despite the positive outlook, investors should be mindful of potential risks. Northrop Grumman's debt-to-equity ratio of 0.98 suggests a reliance on debt financing, which could pose risks. Additionally, insider sales have totaled over 16,000 shares in the last 90 days, raising concerns about future performance [2].

In conclusion, Northrop Grumman appears to be a solid investment with a strong fundamentals and positive analyst ratings. However, investors should carefully consider the potential risks and monitor the company's performance and the broader defense sector.

References:
[1] https://www.marketbeat.com/stocks/NYSE/NOC/forecast/
[2] https://www.marketbeat.com/instant-alerts/filing-dimensional-fund-advisors-lp-acquires-50782-shares-of-northrop-grumman-corporation-nysenoc-2025-08-16/