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) • 09/20/2024 10:01:44 AM
- Elbit Systems Announces the Results of its Annual General Meeting of Shareholders Held on September 19, 2024 • PR Newswire (US) • 09/20/2024 07:01:00 AM
- Gabelli Funds to Host 30th Annual Aerospace & Defense Symposium at The Harvard Club, New York City Thursday, September 5, 2024 • GlobeNewswire Inc. • 09/04/2024 12:00:00 PM
- Gabelli Funds to Host 30th Annual Aerospace & Defense Symposium at The Harvard Club, New York City Thursday, September 5, 2024 • GlobeNewswire Inc. • 08/28/2024 12:00:00 PM
- Gabelli Funds to Host 30th Annual Aerospace & Defense Symposium at The Harvard Club, New York City • GlobeNewswire Inc. • 08/26/2024 12:00:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/15/2024 10:01:29 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/14/2024 10:02:15 AM
- ELBIT SYSTEMS REPORTS SECOND QUARTER 2024 RESULTS • PR Newswire (US) • 08/14/2024 07:31:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/08/2024 10:01:07 AM
- Elbit Systems Awarded $130 Million Contract to Supply Iron Fist APS to BAE Systems Hägglunds for a European Country • PR Newswire (US) • 08/08/2024 07:17:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/06/2024 10:00:55 AM
- Elbit Systems Awarded Approximately $270 Million Contract to Supply Rocket Artillery for an International Customer • PR Newswire (US) • 08/06/2024 06:26:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/01/2024 10:00:34 AM
- Elbit Systems Awarded a Contract of Approximately $340 Million for the Supply of Ammunition to the Israeli Ministry of Defense • PR Newswire (US) • 08/01/2024 06:21:00 AM
- Gabelli Funds to Host 30th Annual Aerospace & Defense Symposium at The Harvard Club, New York City Thursday, September 5, 2024 • GlobeNewswire Inc. • 07/30/2024 08:00:34 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 07/29/2024 10:02:18 AM
- Elbit Systems Awarded Approximately $190 Million Contract to Supply Iron Sting Guided Mortar Munition to the Israeli Ministry of Defense • PR Newswire (US) • 07/29/2024 06:25:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 07/18/2024 10:01:09 AM
- Elbit Systems Schedules Second Quarter 2024 Results Release For August 14, 2024 • PR Newswire (US) • 07/18/2024 07:13:00 AM
- 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
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