Erste Group Bank Predicts Weaker Earnings for Bae Systems

Key Points

• Erste Group Bank lowered its FY2026 EPS forecast for BAE Systems to $4.54 from $4.56, below the $4.59 consensus estimate, while maintaining a “Hold” rating. It expects FY2027 EPS of $5.18.
• Analyst sentiment remains mixed but leans neutral: three firms rate the stock a Buy and six rate it a Hold, producing an overall “Hold” consensus and an average price target of $113.
• BAE Systems shares opened at $102.76, compared with a 52-week range of $84.50 to $126.00. Institutional ownership remains limited at approximately 0.21% of outstanding shares.

Bae Systems PLC (OTCMKTS:BAESY - Free Report) - Analysts at Erste Group Bank cut their FY2026 earnings per share estimates for shares of Bae Systems in a note issued to investors on Tuesday, September 8th. Erste Group Bank analyst H. Engel now anticipates that the aerospace company will post earnings per share of $4.54 for the year, down from their prior estimate of $4.56. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for Bae Systems' current full-year earnings is $4.59 per share. Erste Group Bank also issued estimates for Bae Systems' FY2027 earnings at $5.18 EPS.

Several other brokerages have also recently weighed in on BAESY. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating on shares of Bae Systems in a research report on Tuesday, August 11th. Royal Bank Of Canada started coverage on Bae Systems in a research report on Tuesday, August 11th. They issued a "sector perform" rating on the stock. Morgan Stanley reaffirmed an "overweight" rating on shares of Bae Systems in a research note on Thursday, June 25th. Kepler Capital Markets raised shares of Bae Systems from a "hold" rating to a "buy" rating in a report on Wednesday, June 24th. Finally, BNP Paribas Exane initiated coverage on shares of Bae Systems in a research note on Thursday. They issued a "neutral" rating and a $113.00 target price for the company. Three research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $113.00.

Bae Systems Stock Performance

Shares of BAESY opened at $102.76 on Monday. Bae Systems has a 52 week low of $84.50 and a 52 week high of $126.00. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.87 and a current ratio of 0.99. The stock's 50-day moving average price is $109.74 and its 200-day moving average price is $110.46.

Institutional Investors Weigh In On Bae Systems

Institutional investors have recently added to or reduced their stakes in the stock. Ramirez Asset Management Inc. raised its position in Bae Systems by 6.8% during the fourth quarter. Ramirez Asset Management Inc. now owns 70,620 shares of the aerospace company's stock worth $6,512,000 after acquiring an additional 4,527 shares during the period. First Merchants Corp grew its position in shares of Bae Systems by 1.3% in the first quarter. First Merchants Corp now owns 68,422 shares of the aerospace company's stock valued at $7,940,000 after purchasing an additional 854 shares during the period. Sit Investment Associates Inc. increased its stake in shares of Bae Systems by 2.6% during the fourth quarter. Sit Investment Associates Inc. now owns 35,476 shares of the aerospace company's stock worth $3,295,000 after purchasing an additional 910 shares in the last quarter. L & S Advisors Inc increased its stake in shares of Bae Systems by 14.1% during the fourth quarter. L & S Advisors Inc now owns 21,507 shares of the aerospace company's stock worth $1,998,000 after purchasing an additional 2,662 shares in the last quarter. Finally, Confluence Investment Management LLC raised its position in shares of Bae Systems by 0.9% during the 2nd quarter. Confluence Investment Management LLC now owns 13,420 shares of the aerospace company's stock worth $1,314,000 after purchasing an additional 115 shares during the last quarter. Institutional investors and hedge funds own 0.21% of the company's stock.

Bae Systems Company Profile

BAE Systems plc is a British multinational defense, aerospace and security company. It provides technologies, products and services for governments, armed forces and commercial customers, with activities spanning air, land, sea, space, cybersecurity and intelligence.

The company develops and supports combat aircraft systems, electronic warfare and communications equipment, precision weapons, munitions, armored vehicles, naval ships and submarines. It also provides mission systems, command-and-control technologies, cybersecurity services, engineering, maintenance and long-term support for defense platforms.

BAE Systems was formed in 1999 through the merger of British Aerospace and Marconi Electronic Systems.

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