MARKET TALK: Nomura Lowers BAE Systems Target Price

30th Jul 2010 10:19

0919 GMT [Dow Jones] Nomura lowers BAE Systems (BA.LN) target price to 410p from 450p. Says this cut in target price is to account for a higher risk premium investors are likely to demand given the increased long-term budget uncertainty in the U.S. and Europe. However, describes the company's 1H results as strong. Adds that concerns about budgetary pressures have kept investors from focusing on the company's structural growth outlook and strong cash generation. But "with the diminishing outperformance of the industrial cyclicals and with BAE trading on an estimated 2011 P/E of 7.3x, we think BAE shares are poised for a rebound," says brokerage. Has a buy rating. Shares -0.1% at 320p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 30, 2010 05:19 ET (09:19 GMT)