BAE Systems has been a share price winner in 2022 thanks to the war in Ukraine, rising 36% year to date.
Brokers expect more upgrades and good news on orders to follow next week’s third-quarter update.
A currency tailwind from the strong dollar is helping, with 2p earnings per share sensitivity to each 10c movement.
Previous guidance was set at US$1.38/£1 against US$1.17 currently.
Barclays now forecasts 2022 revenue of £23bn, underlying EBIT of £2.45bn and underlying EPS of 53.7p, up 1% from previously.
'Overweight' is the broker's rating with a 1,020p price target, with Barclays also highlighting digital intelligence as a big growth area going forward.
DI can generate "£1.6bn of revenue and £200m of EBIT" in a decade, in its opinion.
Third-quarter results are due on 15 November.