Northrop Grumman offers best growth in large-cap defense, Baird says

• Northrop Grumman (NOC +0.8%) is initiated with an Outperform rating and $260 price target at Baird, which says NOC is the best growth profile stock in the large-cap defense space.
• The firm forecasts NOC revenue growth to accelerate to the mid-single digits during 2017-20, reflecting the ramp in several key platforms such as the F-35 ramp, Triton UAV, E-2D and the B-21 bomber.
• Baird believes rising defense budgets, strategic portfolio wins and a highly respected management team continue to make NOC an excellent portfolio stock, and says pullbacks should be bought for the long term.