Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

BAE Systems 'still riding high', says Deutsche Bank

(Sharecast News) - Deutsche Bank has hiked its target price for BAE Systems and maintained a 'buy' rating on the aerospace and defence stock, saying that recent growth momentum is likely to continue. In a research note entitled "Still riding high", the bank said it was adjusting its estimates ahead of BAE's annual general meeting on 9 May, when it expects guidance to be confirmed, with a possible update on order intake in the first four months os 2024.

"Since the start of the year, BAE has booked a series of high-profile orders," Deutsche Bank said. "2024 promises to be another strong year for order intake across all segments. It remains unclear whether BAE can match the FY23 record of £37.7bn, but a figure exceeding £30bn would make sense."

The bank noted that business growth at BAE is shifting to Europe and the Middle East. The company already has good exposure to the Nordic, Baltic and Eastern European states - the fastest growing defence markets in Europe - while Eurofighter orders could come from countries like Germany and Saudi Arabia.

Meanwhile, defence budgets are "still holding up" in the UK and US, which together made up 68% of sales in 2023.

"We raise our price target from 1,290p to 1,440p, thanks to the European defence sector re-rating, while valuations in the US are holding up too," Deutsche Bank said.

Share this article

Related Sharecast Articles

Judges Scientific reports subdued start to year
(Sharecast News) - Scientific instrument specialist Judges Scientific reported a subdued start to the year in an update on Tuesday, but said it was optimistic that it would still meet full-year consensus expectations.
Pennon reports revenue growth amid Brixham water crisis
(Sharecast News) - Embattled water utility Pennon Group reported strong financial and operational results for the 2024 financial year on Tuesday, but worked to reassure shareholders and customers amid a contamination crisis in its supply area.
Fresnillo optimistic despite 'challenging environment'
(Sharecast News) - Fresnillo reported increased silver production and gold output in line with guidance in an update on Tuesday, despite the nearing end of the Noche Buena mine, although its gross profit took a hit in 2023.
Greencore shares surge on bright outlook, share buyback
(Sharecast News) - Greencore Group's share price surged on Tuesday morning after the convenience food manufacturer reported a huge jump in first-half profits and launched a share buyback programme as it guided to full-year earnings ahead of market forecasts.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.