BAE Systems: Oddo remains neutral; targets 5.9 pounds
(CercleFinance.com) - BAE Systems is not expensive stock compared to the European average and even more so the US average.
This is why we believe that the share price's weakness should be short-lived, said the broker in its daily equity report. However, Oddo maintains its Neutral rating on the stock and confirms its target price of 5.9 pounds.
BAE Systems has just published H1 2018 results that are down. Revenues are down sharply relative to the first half of 2017 (-9%) and are below Oddo's own estimate (-8%). Meanwhile, EBITA is being more heavily impacted by implementation problems at its Platform & Services (US) and Maritime divisions, the broker points out.
The group's management has maintained its annual guidance, with an earnings profile that is even more pronounced than in previous years. The negative factors over H1 should not be repeated and will enable the group to achieve this target, Oddo says.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
This is why we believe that the share price's weakness should be short-lived, said the broker in its daily equity report. However, Oddo maintains its Neutral rating on the stock and confirms its target price of 5.9 pounds.
BAE Systems has just published H1 2018 results that are down. Revenues are down sharply relative to the first half of 2017 (-9%) and are below Oddo's own estimate (-8%). Meanwhile, EBITA is being more heavily impacted by implementation problems at its Platform & Services (US) and Maritime divisions, the broker points out.
The group's management has maintained its annual guidance, with an earnings profile that is even more pronounced than in previous years. The negative factors over H1 should not be repeated and will enable the group to achieve this target, Oddo says.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.