Street Calls of the Week
Investing.com - JPMorgan has initiated coverage on Elbit Systems (NASDAQ:ESLT) with a Neutral rating and a $520 price target for December 2026. The defense company, currently trading at $497.85 with a market capitalization of $23.32 billion, is showing signs of being overvalued according to InvestingPro Fair Value analysis.
The Israeli-based global defense company has shown significant market performance, with its stock rising 157% over the past year compared to the broader market’s 18% gain, according to JPMorgan’s analysis. InvestingPro data confirms this exceptional performance, showing a 93.48% YTD return and notably, a negative beta of -0.31, indicating the stock often moves counter to market trends. The company has also maintained dividend payments for an impressive 29 consecutive years.
Elbit Systems grew 14% in 2024 and has expanded by more than 20% in the first half of 2025, with particularly strong performance in its Land segment, where demand for missiles, munitions, and protection equipment remains exceptionally high.
Despite tougher comparisons in the second half of 2025, JPMorgan expects Elbit to achieve 16% growth this year to nearly $8 billion in sales, followed by continued double-digit growth in 2026 to approximately $9 billion.
The firm projects Elbit’s adjusted EBIT margin will expand from 8.1% last year to 9.0% this year and reach 10.1% in 2026, with the price target of $520 representing approximately 32 times JPMorgan’s 2027 earnings per share estimate of $16.50.
In other recent news, Elbit Systems reported impressive financial results for Q2 2025, surpassing analyst expectations. The company achieved a non-GAAP EPS of $3.23, which was significantly higher than the projected $2.41, indicating a surprise of 34.02%. Revenue also exceeded forecasts, coming in at $1.97 billion compared to the anticipated $1.82 billion. These results highlight Elbit Systems’ strong performance and ability to capitalize on market demand. Additionally, BofA Securities raised its price target for Elbit Systems from $500 to $540 while maintaining a Buy rating. The increase in the price target reflects the firm’s confidence in Elbit’s continued delivery on rising demand. These recent developments underscore Elbit Systems’ robust financial health and positive market outlook.
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