Broker tips: BAE Systems, Vistry.


Analysts at Berenberg hiked their target price on aerospace and defence firm BAE Systems from 2,000p to 2,300p on Thursday, highlighting that US budget optimism has driven the stock higher.

BAE Systems

Source: Sharecast

Berenberg said BAE Systems was "one of the best performing European defence stocks" so far this year, with shares areup by 32% since the start of 2026.

The German bank stated BAE's FY25 results "reinforced the narrative" that the company will sustainably grow revenue at "a high single-digit rate" over the medium term, with a higher durability to growth post-2030 than the sector average.

Berenberg also noted that US military action in Iran and risks of an escalating regional conflict had raised the prospect for "a significant increase in US defence spending" in FY27.

"We raise our FY29 EPS estimates by 6% to reflect a higher US defence budget over the medium term, and increase our price target to 2,300p. The shares have re-rated to trade on 17.0x P/E in 2030, a 20% premium to peers, a level we view as a fair reflection of the improved outlook," said Berenberg, which has a 'hold' rating on the stock.

Over at RBC Capital Markets, analysts lowered their target price on housebuilder Vistry from 475p to 385p on Thursday following the news that it will split the role of chairman and chief executive after executive chairman Greg Fitzgerald announced his retirement.

RBC Capital also said Vistry's partnership strategy was "yet to deliver the goods", while open market sales were soft, leading current CEO to demand "that each business go forth and double their sales rates".

The Canadian bank, which has an 'underperform' rating on the stock, said it was "surprised" that at this "pivotal moment" the architect of Vistry's current strategy has "called time", and noted that it expects "continued underperformance" until a new CEO "makes their mark".

Reporting by Iain Gilbert at Sharecast.com

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