JPMorgan analyst Seth Seifman upgraded Northrop Grumman to Overweight saying the stock's valuation is no more expensive than the other pure play defense primes despite a slightly better three year earnings growth profile. The analyst upped his price target for shares to $212 from $201.

Says "pleased with cash performance" in Q1. Expects strong cash generation in Q2. Says "committed" to "strong and growing dividend." Remains "upbeat" on long-term prospects.

Says strong global defense budget outlook; broad portfolio well aligned to customer priorities; robust long-term cash flow outlook. Expects greater than $2B in share repurchases in 2024. Says "laser focused" on performance, driving cost efficiencies in the business. Comments taken from Q1 earnings conference call.

For 2024 sees: Aeronautics Systems sales mid $11B, OM rate mid 9%; Defense Systems sales ~ $6B, OM rate low to mid 12%; Missions Systems sales low to mid $11B, OM rate high 14%; Space Systems sales low to mid $14B, OM rate ~9%; Eliminations ~($2.3B), OM rate high 13%. Prior view: Aeronautics Systems sales low $11B, OM rate mid 9%; Defense Systems sales ~ $6B, OM rate low 12%; Missions Systems sales low to mid $11B, OM rate ~ 15%; Space Systems sales mid to high $14B, OM rate ~9%; Eliminations ~($2.3B), OM rate high 13%. Comments taken from investor presentation slides. Comments taken from investor presentation slides.

Backs FY24 free cash flow view $2.25B-$2.65B.

FY24 consensus $24.65. Backs FY24 revenue view $40.8B-$41.2B, consensus $41.11B.