BAE Systems PLC
BA.: XLON (GBR)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
GBX 2,259.00 | Ckclj | Bmdnjfw |
BAE: We Increase Fair Value Estimate From GBX 1,330 to GBX 1,490 on Higher Defense Spending
We are increasing our fair value estimate for wide-moat BAE from GBX 1,330 to GBX 1,490 on the back of higher budgeted defense spending for Europe. Overall, the latest industry estimates show a cumulative increase of over USD 500 billion in European defense for the next decade compared with last year's predictions. Finally, we are incorporating the new growth estimates in our long-term earnings growth rate, increasing it from 3% to 5%.