JPMorgan Initiates Coverage of Elbit Systems Ltd. (ESLT) with Neutral Rating

Elbit Systems Ltd. (NASDAQ:ESLT) is among the 11 Best Military Drone Stocks to Buy According to Hedge Funds. On September 30, JPMorgan initiated coverage of the stock with a Neutral rating and announced a price target of $520 for its shares.

JPMorgan Initiates Coverage of Elbit Systems Ltd. (ESLT) with Neutral Rating

Analyst Seth Seifman noted the company’s strong growth prospects, but also pointed out that the stock had already more than doubled this year, hinting that JPMorgan is looking for a better entry point:

“Elbit is an Israeli-based, geographically diverse global defense company with exposure to several growing markets and margin expansion potential. Nevertheless, the stock is up 157% the past year versus 18% for market.”

Seifman also highlighted Elbit Systems Ltd. (NASDAQ:ESLT)’s impressive sales growth in 2024 and during the first half of this year, driven by demand for missiles, munitions, and protective equipment. The analyst has projected full-year sales growth of 16% for the company in 2025, taking its revenue close to the $8 billion mark, with double-digit growth anticipated again next year.

According to JPMorgan, Elbit Systems Ltd. (NASDAQ:ESLT)’s top-line momentum should also help profitability flourish. The firm forecasts adjusted EBIT margin to grow from 8.1% last year to 9% this year and 10.1% by 2026.

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