Broker snap: Nomura cuts BAE price target

30th Jul 2010 09:44

Strong results and upgraded full year profits guidance has not been enough to overcome investor concerns about future prospects for BAE Systems, a situation acknowledged by Nomura Securities' decision to slice its price target for the defence systems firm.The broker is sticking with its "buy" recommendation despite chopping the price target from 450p to 410p "to account for a higher risk premium investors are likely to demand given the increased long-term budget uncertainty in the US and Europe.""Macro concerns about budgetary pressures have kept investors from focusing on the company's structural growth outlook and strong cash generation," argues Nomura analyst Jason Adams.