BofA Sees Margin Expansion and Strong Earnings Growth in Defense -- Market Talk

Dow Jones12-04

1141 GMT - The defense sector will see margin expansion and strong earnings-per-share growth in the mid-term, BofA Securities says. Orders have been very strong over the past 18 months. BofA sees strong organic growth of 12% through 2026. This will support a sector EPS compound annual growth rate of around 23%. "Valuations are elevated vs. history, but the growth outlook is supportive," it says. The upcoming election in Germany could be positive for companies in the country, and Donald Trump's election is positive for NATO spending. BofA's top picks are Rheinmetall and Hensoldt. The U.S. bank also likes Leonardo, rated at a buy with a 30.5 euro target on the stock, and Babcock, rated at a buy with a 725 pound target. The two companies trade at significant discounts relative to peers and have progressing portfolios. U.S. exposure is complicated however by the growing narrative on budget efficiency. BofA downgrades BAE Systems and QinetiQ. (alistair.macdonald@wsj.com)

(END) Dow Jones Newswires

December 04, 2024 06:41 ET (11:41 GMT)

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The upcoming election in Germany could be positive for companies in the country, and Donald Trump's election is positive for NATO spending. BofA's top picks are Rheinmetall and Hensoldt. The U.S. bank also likes Leonardo, rated at a buy with a 30.5 euro target on the stock, and Babcock, rated at a buy with a 725 pound target. The two companies trade at significant discounts relative to peers and have progressing portfolios. U.S. exposure is complicated however by the growing narrative on budget efficiency. BofA downgrades BAE Systems and QinetiQ. (alistair.macdonald@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  December 04, 2024 06:41 ET (11:41 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>BofA Sees Margin Expansion and Strong Earnings Growth in Defense -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBofA Sees Margin Expansion and Strong Earnings Growth in Defense -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-04 19:41 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>1141 GMT - The defense sector will see margin expansion and strong earnings-per-share growth in the mid-term, BofA Securities says. Orders have been very strong over the past 18 months. BofA sees ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BAESY","symbol_name":"BAE Systems PLC","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2488161790","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2488161790","pubTimestamp":1733312460,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"1141 GMT - The defense sector will see margin expansion and strong earnings-per-share growth in the mid-term, BofA Securities says. 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","collect":0,"end_time":0,"defaultTopTitle":"","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"BAESY":"BAE Systems PLC"},"translate_title":"美国银行预计国防领域利润率将扩大，盈利将强劲增长——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BAESY":0.9},"content_text":"1141 GMT - The defense sector will see margin expansion and strong earnings-per-share growth in the mid-term, BofA Securities says. Orders have been very strong over the past 18 months. BofA sees strong organic growth of 12% through 2026. This will support a sector EPS compound annual growth rate of around 23%. \"Valuations are elevated vs. history, but the growth outlook is supportive,\" it says. The upcoming election in Germany could be positive for companies in the country, and Donald Trump's election is positive for NATO spending. BofA's top picks are Rheinmetall and Hensoldt. 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