http://globes-online.com/serveen/globes/docview.asp?did=1000307303&fid=942
"Elbit is currently trading at a premium to the sector."
Globes correspondent 7 Feb 08 11:24
UBS has cut its recommendation for defense company Elbit Systems (Nasdaq: ESLT; TASE: ESLT) from "Buy" to "Neutral". Nevertheless, UBS analysts Darren Shaw and Roni Biron raise their price target for the stock from $51 to $63. This compares to a closing price in New York yesterday of $57.51, which gives the company a market cap of $2.42 billion.
Shaw and Biron say that , although Elbit shows rapid revenue growth, its profitability lags its sector, while its share is at a premium.
"Elbit is a fast-growing defence player, offering a wide range of electronic and electro-optic solutions. Over the past several years, the company has boosted its profile via M&A and strategic partnerships. This has translated into very strong deal-flow, including ‘high-profile projects such as Watchkeeper in the UK." Shaw and Biron write.
"We expect Elbit to end 2007 with nearly $2 billion in revenue, more than double its 2004 level. This reflects organic growth of about 20% in the past two years, coupled with M&A activity. Elbit’s order backlog has shown a similar trend, reaching a record level of $4.55 billion, or 2.3x 2007 estimated sales. We expect 2008 to reflect revenue growth in excess of 17% and an additional increase in backlog.
"While Elbit’s growth and visibility are at the higher end of the defence spectrum, its profitability is below average. We believe margins should improve over time on the back of operating leverage and efficiency gains. However, we expect integration costs, and currency exposure to weigh on profitability in the near term.
"We raise our price target to $63 from $51 but downgrade our rating to Neutral from Buy. Elbit is currently trading at a premium to the sector. While this is justified, in our view, given Elbit’s quality play on defence electronics, we believe the risk-reward is mostly priced in at current levels. Our price target is DCF based," the report concludes.
Recent ESLT News
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 06/10/2024 10:01:31 AM
- S&P Global Ratings Maalot Reaffirms Elbit Systems' Long Term Rating of "ilAA" (Local Scale), With a Stable Outlook and Short Term Rating of "ilA-1+" (Local Scale) • PR Newswire (US) • 06/10/2024 08:15:00 AM
- Form SD - Specialized disclosure report • Edgar (US Regulatory) • 05/29/2024 10:03:49 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/28/2024 10:02:25 AM
- ELBIT SYSTEMS REPORTS FIRST QUARTER 2024 RESULTS • PR Newswire (US) • 05/28/2024 07:32:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/23/2024 10:00:42 AM
- Elbit Systems Awarded a Contract of Approximately $260 Million by an International Customer • PR Newswire (US) • 05/23/2024 07:15:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/21/2024 10:01:15 AM
- Elbit Systems Awarded a Group of Contracts in an Aggregate Amount of Approximately $760 Million for the Supply of Ammunitions to the Israeli Ministry of Defense • PR Newswire (US) • 05/21/2024 06:21:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/08/2024 10:05:18 AM
- Elbit Systems Awarded Approximately $53 Million Contract to Supply Crossbow Unmanned Turreted Mortar Systems for a European Customer • PR Newswire (US) • 05/08/2024 06:43:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/06/2024 10:02:20 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/06/2024 10:01:04 AM
- Elbit Systems Schedules First Quarter 2024 Results Release For May 28, 2024 • PR Newswire (US) • 05/06/2024 06:58:00 AM
- Elbit Systems Awarded $37 Million Contract to Supply Iron Fist APS for Upgrading U.S. Army's Bradley IFVs • PR Newswire (US) • 05/05/2024 06:34:00 AM
- Elbit Systems Awarded Approximately $50 Million Contract for a New Air Defense System by an International Customer • PR Newswire (US) • 04/30/2024 06:55:00 AM
- Elbit Systems Announces a Postponement of its Extraordinary General Meeting of Shareholders • PR Newswire (US) • 04/17/2024 05:55:00 PM
- Elbit Systems Announces Amendment to the Company's Proxy Statement • PR Newswire (US) • 04/01/2024 08:38:00 AM
- Elbit Systems Announces the Filing of its Annual Report on Form 20-F for Fiscal Year 2023 • PR Newswire (US) • 03/28/2024 12:34:00 PM
- U.S. Index Futures on the Rise, Oil Prices Show Stability • IH Market News • 03/26/2024 11:21:42 AM
- ELBIT SYSTEMS REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS • PR Newswire (US) • 03/26/2024 08:39:00 AM
- Elbit Systems Awarded Approximately $300 Million Contract to Supply Defense Solutions for an International Customer • PR Newswire (US) • 03/25/2024 09:24:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/05/2024 11:00:51 AM
- Elbit Systems Reports Impact on its Fourth Quarter 2023 Financial Results Due to Non-Cash Expenses • PR Newswire (US) • 03/05/2024 08:43:00 AM
- Collins Elbit Vision Systems delivers 3,000th F-35 Gen III Helmet Mounted Display System to the Joint Strike Fighter • PR Newswire (US) • 02/26/2024 02:00:00 PM
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