Panmure Liberum has reiterated its “buy” rating on BAE Systems PLC (LSE:BA.), citing steady demand and robust fundamentals.
That said, the stock is nudging close to the broker's one-year and three-year price targets.
BAE’s Q3 update confirmed stable full-year guidance and showcased strong order momentum, with £25 billion in contracts secured so far in 2024.
Analysts expect total orders to exceed £33 billion by year’s end, supported by major contracts within MBDA, BAE’s missile-systems joint venture.
The company’s workforce grew by 7.5% as of October, underscoring the aerospace giant's expansion efforts.
Additionally, its recent acquisition of Ball Aerospace, a US-based defence technology firm, is on track to deliver an annual 10% revenue growth, strengthening BAE’s position in the American market.
Analysts at Panmure Liberum anticipate further earnings growth if substantial Typhoon fighter jet orders from Turkey and Saudi Arabia materialize, marking potential multi-year gains for BAE.
The stock, down 2.5% at 1,347.5p, succumbed to some mild profit-taking.