Buy this defense giant as its long-term prospects improve, days Deutsche Bank

Northrop Grumman is setting itself up for a strong future, according to Deutsche Bank. The bank upgraded the aerospace and defense stock to buy from hold. It also raised its price target to $700 from $575, implying a gain of 13%. NOC YTD mountain NOC YTD chart Analyst Scott Deuschle pointed to strong expected free cash flow growth after 2028. This should happen after the Northrop Grumman B-21 Raider stealth bomber flips from cash losses to cash profit around 2029 and 2030. The Northrop Grumman Sentinel program will also move to higher margin and growth production, he said. "Further supporting our argument on the multiple, we think NOC remains the name in our defense coverage arguably least exposed to low-end disruption risk, mitigating risks to the multiple as newer entrants make headway,"