NEW YORK (TheStreet) -- Shares of Northrop Grumman (NOC) climbed to close higher by 5.61% to $147.69 on heavy volume Friday, after the company was added to Goldman Sachs' "conviction buy" list and announced its new $3 billion buyback plan.
The aerospace company was upgraded at Goldman Sachs to "conviction buy" from its previous "buy" rating. Analysts at the firm also raised the company's price target to $165 from $163.
Goldman believes the company's position as the biggest subcontractor in the Pentagon's largest growth program, the Joint Strike Fighter, makes it a premium buy.
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Late Thursday, the company announced its $3 billion dollar repurchase program, and added that it aims to buy back a quarter of its shares by the end of next year.
About 1.76 million shares traded hands in today's session, compared to its average trading volume of about 1.22 million shares a day.
Separately, TheStreet Ratings team rates NORTHROP GRUMMAN CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NORTHROP GRUMMAN CORP (NOC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income."