BofA Securities initiates Elbit Systems stock with Buy rating, $500 target

Investing.com - BofA Securities initiated coverage on Elbit Systems (NASDAQ:ESLT) with a Buy rating and a $500 price target on Thursday. The stock has demonstrated remarkable strength, delivering a 144% return over the past year and maintaining dividend payments for 29 consecutive years, according to InvestingPro data.

The Israel-based defense technology company is positioned as a leader in innovation and serves as a key supplier to Western allies globally, according to the research firm.

BofA Securities noted that Elbit Systems is currently benefiting from the global defense rearmament trend, supporting its positive outlook on the stock.

The $500 price target is based on a 21x EV/EBITDA multiple on 2026 estimates, reflecting expectations for continued growth in the coming years.

The valuation represents a premium compared to large-cap U.S. defense companies but remains in line with small and mid-cap U.S. and European defense names, which BofA Securities considers fair given Elbit’s growth prospects.

In other recent news, Elbit Systems reported strong financial results for the first quarter of 2025, surpassing market expectations. The company achieved an earnings per share (EPS) of $2.57, exceeding the forecasted $2.08. Additionally, Elbit Systems reported revenue of $1.896 billion, which was higher than the anticipated $1.69 billion. Jefferies, maintaining a Hold rating, lifted its price target for Elbit Systems to $450 from $435, citing the company’s strong performance. Analyst Sheila Kahyaoglu highlighted a 22% organic growth and a 90 basis points improvement in adjusted EBIT margin. The company’s Land segment saw a notable 36% growth, driven by operational leverage and productivity improvements in Elbit Systems of America. This segment also experienced a 350 basis points margin increase, reaching 7%. These developments reflect the company’s robust operational performance and positive investor sentiment.

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