** 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
(Reporting by Kamal Choudhury in Bengaluru)
((Kamal.Choudhury@thomsonreuters.com;))
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