10:50 AM EDT, 08/20/2025 (MT Newswires) -- Northrop Grumman's ( NOC ) revenue outlook is robust, and the company could produce double-digit international growth for several years, RBC Capital Markets said.

The brokerage said in a Tuesday note that funding for Northrop's B-21 bomber is increasing, which indicates a faster development pace. It also said that negotiations on pricing for the B-21 "appear to be constructive."

Analysts said the company's international growth could represent a strong tailwind for multiple years as defense spending increases globally. They added that international revenue as a higher proportion of Northrop's total revenue could also boost the company's margins.

RBC said that considering Northrop's B-21 bomber, Sentinel program, growth in international revenues, and other opportunities that potentially include contracts for the Golden Dome defense system, "investors will reward NOC for upside to the growth expectations."

The brokerage retained an outperform rating and raised the stock's price target to $650 from $625.

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