RBC ups Northrop Grumman to 'outperform' on nuclear program momentum

RBC upgrades defense co Northrop Grumman NOC.N to "outperform" from "sector perform"

Raises stock's PT to $575 from $500, a 13.4% upside to last close

Says co well-positioned for shifting Department of Defense (DoD) priorities, particularly in nuclear modernization programs, including B-21 Raider and Sentinel, which are key focus areas in recent memo

Says NOC has "less exposure to European defense relative to peers", seen as a positive, and co will benefit from its position as "quality US defense prime" from any rotation back to US defense stocks

Believes DoD likely to "diversify Navy's F/A-XX aircraft program" after awarding NGAD contract to Boeing BA.N; NOC likely choice to benefit from this

Nuclear triad programs expected to be "protected under the Trump Administration" with B-21 "likely safe from FY26 budget pressures" - brokerage

NOC climbed ~8% in last 12 months