Deutsche Bank lifts BAE Systems price target

(Sharecast News) - Deutsche Bank lifted its price target on BAE Systems on Monday to 2,220p from 2,170p and retained its 'buy' rating, mainly due to a re-rating of the US defence sector. The bank said it saw the Defence and Security Equipment International (DSEI) show as "a catalyst for the story".

"The environment is buoyant for new orders, and the longer-term pipeline was bolstered by programme announcements," DB said.

"Operational leverage is also on the agenda, with higher volumes materialising in most divisions, and automation and streamlined processes set to further support this."

Deutsche said strategic partnerships announced at DSEI are set to drive innovation and growth, limiting risks and accelerating programme execution.

At 0955 BST, the shares were up 0.4% at 1,989.68p.