{
}
UBS has raised its price target for BAE from 1,600p to 2,450p, citing an anticipated increase in European defense spending, projected to reach 2.8% of GDP by 2030. The firm noted that BAE, despite underperforming compared to peers, remains a top-quality defense company with significant market potential. Analysts believe that changing investor perceptions and geopolitical factors will further boost defense budgets across Europe.
UBS has upgraded Thales shares from Neutral to Buy, increasing the target price from €160 to €330, citing strong positioning for the defense supercycle due to its focus on electronic systems and integrated communications. The broker raised its 2029 earnings-per-share estimates by 12% following a 25% increase in EBIT estimates for the defense sector. UBS also highlights cautious expectations for European defense spending, predicting a shift in market share from US firms to European players.
UBS has upgraded Thales shares from Neutral to Buy, increasing the target price from €160 to €330, citing the company's strong position in the defense supercycle due to its focus on electronic systems and integrated communications. The broker raised its 2029 earnings per share estimates by 12% following a 25% increase in EBIT estimates for the defense sector. UBS also highlights cautious expectations for European defense spending, projecting 2.5% of GDP by 2030, and has similarly upgraded Saab while downgrading Leonardo to Neutral.
UBS has upgraded Thales shares from Neutral to Buy, increasing the target price from €160 to €330, citing strong positioning for the defense supercycle due to its focus on electronic systems and integrated communications. The broker raised its 2029 earnings-per-share estimates by 12% following a 25% increase in EBIT estimates for the defense sector. UBS also highlights a trend of European defense players gaining market share from US primes, maintaining Buy ratings for several defense stocks while downgrading Leonardo to Neutral.
UBS has upgraded Thales shares from Neutral to Buy, increasing the target price from €160 to €330, citing strong positioning for the defense supercycle due to its focus on electronic systems and integrated communications. The broker raised its 2029 earnings-per-share estimates by 12% following a 25% increase in EBIT estimates for the defense sector. UBS also highlights cautious expectations for European defense spending, predicting a shift in market share from US primes to European players.
Riversgold Ltd has secured an 80% interest in the Kalgoorlie Gold Project’s Northern Zone after exceeding the A$600,000 exploration expenditure requirement. The company plans to advance drilling and convert the tenement into a Mining Lease, with a drill rig mobilizing next month for the 2025 exploration program. Initial findings indicate a significant gold system, with metallurgical testing showing a recovery rate of 92.9%.
The week of February 17-21 will see significant earnings reports from major companies including BHP, InterContinental Hotels, BAE Systems, HSBC, and Rio Tinto. Key economic indicators such as the UK unemployment rate, wage growth, and various US metrics will also be released, influencing market sentiment. Notable shareholder meetings and trading updates are scheduled, alongside final results from firms like Centrica and Standard Chartered.
UBS strategists, led by Andrew Garthwaite, warn that a 5% yield on the US 10-year Treasury could signal a negative shift for equities, with a 35% chance of a stock market bubble emerging if bubble areas exceed 30% of global market cap and P/E ratios hit 45x or higher.Currently, the "Mag 6" tech stocks have a P/E ratio of 34x. UBS forecasts a decline in US bond yields to 4.25% by year-end, recommending a defensive investment strategy focused on undervalued sectors like utilities and real estate, while remaining underweight on non-financial cyclicals.
UBS analysts warn of a 35% chance of a stock market bubble due to rising bond yields, particularly affecting high-valuation sectors like technology. If bond yields hit 5.5%, high-valuation sectors could comprise 40% of the market with a P/E ratio of at least 45 times. UBS recommends low-leverage defensive stocks and suggests increasing exposure to financial stocks as a hedge against populism and inflation.
UBS analysts assign a 35% probability to the emergence of a stock market bubble, particularly in high-value sectors like technology, as bond yields rise. They note that the P/E ratio for major tech stocks is currently at 34x, with a potential bubble forming if it reaches 45x at 5.5% yields. UBS advises caution with non-financial cyclicals and recommends defensive stocks with low financial leverage, while suggesting financials as a hedge against populism and inflation.
BAE Systems plc
Companies
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
ubs raises baes price target amid expected surge in european defense spending
British Pound Sterling
BAE Systems plc
Thales
Mbda
USA
GBR
Donald Trump
Elon Musk
Joe Biden
Show more
16:20 24.03.2025
ubs upgrades thales to buy amid defense sector growth expectations
10:49 24.03.2025
ubs upgrades thales to buy amid defense sector growth prospects
Euro
RHEINMETALL
Leonardo S.p.a.
BAE Systems plc
Thales
Dassault Aviation SA
FRA
Thales Hoss
Show more
10:47 24.03.2025
ubs upgrades thales to buy amid defense sector growth expectations
10:47 24.03.2025
ubs upgrades thales to buy citing defense sector growth potential
10:47 24.03.2025
Riversgold secures 80 percent stake in Kalgoorlie Gold Project Northern Zone
Australian Dollar
HSBC Holdings plc
Oracle Power plc
BAE Systems plc
Glencore plc
AUS
David Lenigas
Show more
06:00 19.02.2025
key earnings reports and economic indicators to watch this week
HSBC Holdings plc
BHP Group Ltd
Centrica plc
BAE Systems plc
Rio Tinto Ltd
Standard Chartered PLC
InterContinental Hotels Group PLC
Lloyds Banking Group plc
Show more
17:00 16.02.2025
ubs strategists warn of tech stock valuations and bond yield risks
United States Dollar
BAE Systems plc
SSE plc
Leonardo S.p.a.
National Grid plc
Persimmon Plc
Tesco PLC
Microsoft Corp
SAP SE
Land Securities Group PLC
USA
JPN
GBR
Andrew Garthwaite
Show more
20:36 25.01.2025
ubs warns of potential stock market bubble amid rising bond yields
09:02 24.01.2025
ubs warns of potential stock market bubble amid rising bond yields
Japanese Yen
United States Dollar
Euro
Brazilian Real
Microsoft Corporation
BAE Systems plc
Tesco PLC
Show more
12:49 23.01.2025
Trending
Subcategory
Stock Market Updates
Corporate News
Finance Mergers & Acquisitions
Industry Trends
Banking Regulations
Global Financial Events
Market Analysis and Predictions
Financial Scams and Security
Hedge Funds & Private Equity
Retail and Consumer Goods
Government Policies
CEO Changes
Startups & Entrepreneurship
Domestic Politics
Industry Mergers & Acquisitions
Workplace Trends
Government Economic Policies
Supply Chain Management
Consumer Protection Regulations
Economic Sanctions
Countries:
Companies:
JPMorgan Chase & Co.
Wells Fargo & Company
Tesla, Inc.
The Goldman Sachs Group, Inc.
Bank of America Corporation
Morgan Stanley
Citigroup Inc.
U.S. Bancorp
American Express Company
Apple Inc.
SpaceXCoin USD
Barclays PLC
UBS Group AG
AMERICAN EXPRESS
The Charles Schwab Corporation
lululemon athletica inc.
Capital One Financial Corporation
Citi Trends, Inc.
Northern Trust Corporation
Credit Suisse Strategic Income I
Currencies:
United States Dollar
Euro
Swiss Franc
Chinese Yuan
Indian Rupee
British Pound Sterling
Canadian Dollar
Saudi Riyal
Australian Dollar
Japanese Yen
United Arab Emirates Dirham
Chilean Peso
Russian Ruble
Singapore Dollar
Indonesian Rupiah
Ghanaian Cedi
Mexican Peso
People:
Elon Musk
Donald Trump
Michael J. Angelakis
Anand Selvakesari
Charlie Javice
Robin Leopold
Troy L Rohrbaugh
Jennifer Piepszak
Raja Akram
Mark Mason
Sergio Ermotti
Kevin R Johnson
Ravikumar Radhakrishnan
David M. Solomon
John Waldron
Karin Keller-Sutter
Pam Bondi
James L Chosy
Thomas A. South
Sara Wechter