Deutsche Bank raises target price on BAE Systems
Analysts at Deutsche Bank raised their target price on aerospace and defence giant BAE Systems from 860.0p to 970.0p on Friday, stating the group was "still in a sweet spot".
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Deutsche Bank raised its 2022-2025 estimates for BAE by 4-9%, as it modelled a stronger US dollar and also included the group's three-year £1.5bn buyback programme.
"These elements, coupled with a pension surplus and an improved midterm cash flow estimate, help to push our price target up to 970.0p," said DB, which reiterated its 'buy' rating on the stock.
The German bank also believes upside potential still remains, as a strong order pipeline should help spur extra growth, with BAE's portfolio increasingly returning to "the sweet spot" of global defence spending.
Reporting by Iain Gilbert at Sharecast.com