Jefferies analyst Chloe Lemaire maintained a Buy rating on BAE Systems yesterday and set a price target of p2,060.00.
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Chloe Lemaire’s rating is based on BAE Systems’ strong order intake and positive financial outlook. The company has secured £27 billion in orders so far, which positions it well to exceed its sales targets for the fiscal year 2025. This robust order book includes significant deals such as Turkey’s purchase of Typhoon aircraft and anticipated future contracts like the Norway-UK agreement for Type 26 frigates.
BAE Systems has reiterated its financial guidance, expecting growth in sales, EBIT, and EPS in the range of 8-11%. The company also forecasts free cash flow exceeding £1.1 billion. Despite potential risks such as the US government shutdown, which has not yet materially impacted operations, the overall outlook remains solid, supporting the Buy rating.
Lemaire covers the Industrials sector, focusing on stocks such as Airbus Group SE, MTU Aero Engines, and Rheinmetall. According to TipRanks, Lemaire has an average return of 37.6% and an 87.01% success rate on recommended stocks.