BAE Systems "buy"

01/02/07 - Panmure Gordon & Co

LONDON, January 1 (newratings.com) - Analyst Nick Cunningham of Panmure Gordon maintains his "buy" rating on BAE Systems Plc (BA.-GBX). The target price is set to 475p.

In a research note published this morning, the analyst mentions that despite the anticipated slowdown in the global economy around end-2010, the company is likely to witness robust growth. The current valuation of BAE Systems’ stock underestimates the company’s potential to make stock buybacks and value accretive acquisitions, Panmure Gordon & Co says. The company is well positioned to continue to witness earnings growth into the forthcoming decade, the analyst adds.