0859 GMT - Although some investors are wary that BAE Systems' valuation has reached uncharted territory, Vertical Research Partners says there are "clear industry and company fundamentals that support this move." The shares are up 25% this year, versus 5.8% for the FTSE 100. Vertical raises its target price to GBP16 from GBP14. Sgnificant increases in European and Asian defense spending haven't been experienced since the 1930s and current valuation methods are "not that relevant," Vertical says in a note. Budget increases should continue for a number of years, it says. BAE offers "significant exposure to this expansion" and gives investors "an optimal combination of both growth and quality." BAE remains Vertical's top pick in defense. BAE shares rise 0.1% to GBP13.90. (alistair.macdonald@wsj.com)
(END) Dow Jones Newswires
June 13, 2024 04:59 ET (08:59 GMT)
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