Northrop Grumman (NOC) has had a disappointing first-quarter 2026 results, with modest earnings beat, strong bookings, and a $96 billion backlog. However, the company's stock fell due to a number in the capital expenditure outlook, including the B-21 stealth bomber program, expanding, accelerating, and becoming more expensive. Morgan Stanley has now revised its price target to $745 from $765, stating that the selloff is a buying opportunity hiding in plain sight. The bank highlighted the potential value in Northrop Grummman's portfolio, which is concentrated on key defense missile programs and missile technology.