US stock futures dip as Nvidia earnings spark little cheer
Investing.com - BofA Securities raised its price target on Elbit Systems (NASDAQ:ESLT) to $540 from $500 while maintaining a Buy rating on the stock. The defense company has shown remarkable momentum, with its stock delivering a 130% return over the past year and an impressive 78% gain year-to-date.
The firm cited Elbit’s continued delivery on surging demand as the primary reason for the price target increase, which represents an 8% upside from the previous target.
BofA also revised its 2025 earnings per share estimate for Elbit upward to $12.10 from the previous estimate of $11.35, reflecting stronger than expected growth in the recent quarter.
The new price target is based on a 23x EV/EBITDA multiple on 2026 estimates, increased from the previous 21x multiple, with BofA noting multiple expansion across defense sector names.
BofA views Elbit’s valuation premium relative to large-cap U.S. defense companies as fair, noting it remains in line with small and mid-cap U.S. and European defense names.
In other recent news, Elbit Systems Ltd. reported impressive financial results for the second quarter of 2025, surpassing analyst expectations. The company achieved a non-GAAP earnings per share (EPS) of $3.23, which was well above the anticipated $2.41, representing a surprise of 34.02%. Additionally, Elbit Systems’ revenue reached $1.97 billion, outperforming the forecasted $1.82 billion. These results highlight a strong performance for the quarter. The company’s ability to exceed both earnings and revenue projections has been noted positively. Analysts have been closely monitoring these developments, and firms are likely to update their evaluations based on this performance. These recent developments underscore Elbit Systems’ robust financial health during this period.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.