(Sharecast News) - JPMorgan Cazenove lifted its price target on BAE Systems on Friday to 1,500p from 1,400p as it pointed to an exciting list of potential new contracts.
"In the last two weeks we met with BAE at JP Morgan's Capital Goods Conference and again at the Eurosatory defence trade show in Paris," JPM said.
"We believe that there is now a long list of credible opportunities which are not in consensus estimates."
The bank said it was lifting its 2025-27 earnings per share estimates by 2%/ 3%/ 4% respectively, assuming that BAE secures some - but not all - of these opportunities.
JPM said it sees upside to its new estimates and price target if BAE secures more of the potential opportunities than we it assumed.
"In particular, we have not modelled the potential upside from Saudi Arabia ordering more Eurofighter aircraft," it said.