Northrop Grumman (NOC) remains positioned for long-term growth despite a "tepid" Q3, BofA Securities said in a Wednesday note.

The company reported higher Q3 earnings and revenue on Tuesday but cut its 2025 sales forecast. BofA said the mid-single digit topline growth outlook remains in line with expectations, but some investors were "disappointed by weak backlog conversion."

Northrop Grumman has "multiple pathways" to beat its outlook as a number of pending programs are not yet reflected in the guidance, according to BofA.

Meanwhile, BofA analysts said the F/A-XX, Sentinel and B-21 programs could be "key growth accelerators" for the company, pending favorable decisions.

"We continue to see Northrop Grumman well aligned with current and future defense priorities, both domestically and abroad," BofA said.

BofA maintained its buy rating on the stock, while raising its price target to $685 from $650.

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