British aerospace and defence big cap BAE Systems PLC (LSE:BA.) faces a “decade of growth and visibility”, said analysts at JPMorgan following the FTSE 100 firm’s appearance at the UK Leaders Conference this week.
One week earlier, BAE confirmed its guidance after reporting a strong order book in the second half of the year.
BAE’s strong free cash flow adds to the group’s investment thesis in the form of attractive dividends and consistent share buybacks.
“We also believe that BAE has a far lower risk profile today than in the past,” said the bank.
JPMorgan upped its guidance as a result of this outlook, increasing the share price target from 1,150p to 1,300p with an 'overweight' rating.