While reiterating its 'neutral' opinion on BAE Systems, Oddo BHF is raising its target price from 1070 to 1330 pence, the day after the British defense group published its 2023 results.

Beyond the short-term risk linked to the evolution of the US Department of Defense budget, visibility remains high, but we believe that the current valuation correctly reflects the fundamentals and the TMVA 2023-28 EPS of 9%', the analyst judges.

In the defense sector, Oddo BHF continues to favor Rheinmetall, but notes that 'the derating of Thales is becoming notable (10% premium in PE 12 months sliding in favor of BAE Systems against a discount of 4% on average over the year 2023)'.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.