(CercleFinance.com) – The title ends the session in balance. Stifel reaffirms its ‘hold’ advice and its 500 pence price target on BAE Systems, despite lowering its EPS estimates to very slightly below consensus levels from 2022, in update of his model.
‘BAE is, in our view, generally well conducted, with margins close to effective ceiling levels, a solid book-to-bill ratio for the last three years at 1.13 times, and a welcome resumption of share buybacks’, judge the broker.
However, Stifel points to ‘dominant issues such as a backdrop of pressure on defense spending from its largest customers, a deadlock on significant Saudi orders, coupled with upward pressure on tax rates.’
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