Analyst Chloe Lemaire of Jefferies maintained a Hold rating on BAE Systems (BAESF – Research Report), with a price target of p1,630.00.
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Chloe Lemaire’s rating is based on a combination of factors, including BAE Systems’ expected financial performance and market conditions. The company is anticipated to report a 7% increase in sales and a 6% rise in EBIT for the first half of the year, indicating a solid start despite some foreign exchange challenges. However, the anticipated decline in orders by 11% year-over-year suggests a potential slowdown in new business acquisitions compared to the previous year.
Additionally, the forecasted free cash flow is expected to be negative, primarily due to weaker working capital development influenced by downpayment phasing. While the company is likely to maintain its full-year guidance, the presence of foreign exchange headwinds could lead to consensus cuts. These mixed signals contribute to the Hold rating, reflecting a cautious stance amidst both positive growth indicators and potential financial pressures.
Based on the recent corporate insider activity of 186 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BAESF in relation to earlier this year.