Proactive Investors - BAE Systems (LON:BAES) has upgraded to 'buy' by Citi on a recent share price dip and expectations that recent sales growth can be extended.
“We are increasingly confident about the duration of 5-7% extending out beyond our 5-year base case – 10 years growth would increase fair value to 1,550-1,600p.
As it stands, the current share price target rises to 1,440p (3%) with the short term affected by slightly worse $/£ translation).
“BAE Systems also has significant exposure to the US but is trading on 14.5 times 2024 EV/EBIT vs US peers on 16.7-18.5x, despite similar profit growth forecasts. “
BAE shares rose by 1.5% to 1,292p.