seekingalpha.com
BAE Systems: Europe's Defense Boom Still Isn't Fully Priced In
BAE Systems remains a Buy, with a $35.50 price target and 13% upside, supported by robust order intake and expanding European defense budgets. Sales grew 10%, and backlog reached £83.6 billion, supporting high single-digit growth, though margin expansion is constrained by early-stage program ramp-ups. 2026 guidance calls for 7-9% sales growth and 9-11% EBIT growth, but EBITDA margins will face pressure as lower-margin segments expand rapidly.
