Northrop Grumman Corp. (NOC) Secures $100M Missile Weapon System Contract as Analyst Optimism Grows

Northrop Grumman Corporation (NYSE:NOC) is one of the best aerospace and defense stocks to buy, according to Wall Street analysts. On December 12, Citi initiated coverage of Northrop Grumman with a Buy rating and a $654 price target. The firm also began coverage on 24 aerospace and defense names, pointing to strong long-term trends across commercial aviation, defense, shipbuilding, and space. Citi said these dynamics could create a trillion-dollar company within five years, highlighting GE Aerospace as a potential contender. RTX was named its top megatrend pick, while Boeing was viewed as a promising turnaround. Analysts expect momentum to build in the fourth quarter and continue into early next year.

On December 9, the company secured a $100 million contract from the US Department of War. The contract is for missile weapon systems development and production for work on the Stand-in Attack Weapon SiAW and Advanced Anti-Radiation Guided Missile (AARGM-ER) systems.

The SiAW is an air-to-surface missile system designed to disrupt the enemy’s anti-access/area denial environment. Northrop is to develop the weapon system with a Weapon Open Systems to enable future upgrades. The $100 million contract will also cover active seeker components test and evaluation support.

Northrop, in partnership with the US Air Force, has already completed a separation test in the Stand-In Attack Weapon system from an F-16 aircraft. The test aimed to validate the missile system’s flight safety and aerodynamic performance.

“The separation test of SiAW from the F-16 is intended to provide the United States Air Force validation of the weapon’s safe separation characteristics and also generate invaluable data for optimizing its performance,” said Col. Gary E. Roos, senior materiel leader, Adaptive Weapons Division, Air Force Life Cycle Management Center.

Northrop Grumman Corp. (NYSE:NOC) is a global technology company specializing in aerospace and defense. It creates advanced systems, products, and services for space, air, cyber, and defense, including military aircraft, satellites, and autonomous systems.

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Disclosure: None. This article is originally published at Insider Monkey.