1103 GMT - The market is overpricing investors' concerns over BAE Systems' 45% exposure to the U.S. market and the uncertainty around U.S. defense procurement due to Elon Musk's reforms, UBS analysts say. BAE remains the highest quality defense company in the European sector, with the most diversified product portfolio and geographical scope, the analysts say. The company should benefit well from the increasing defense budgets in Europe, they say. Also, investors' negative sentiment is beginning to turn, and U.S. President Trump's 2026 budget request in the next few weeks or months could be another positive catalyst for the shares, they add. UBS lifts its organic growth estimates for BAE's Electronic Systems business to 10% in 2027 and 13% by 2029 from 8% in 2027-29 expected previously. Shares are up 0.3% at 16 pounds. (cristina.gallardo@wsj.com)
(END) Dow Jones Newswires
March 24, 2025 07:03 ET (11:03 GMT)
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