Bank of America repeats its Buy rating on Norwegian defense group Kongsberg Gruppen with a price target of 400 Norwegian kroner.
Ahead of the third-quarter report, the bank expects order intake of 19.5 billion Norwegian kroner, around 60 percent above consensus. At the same time, the EBIT margin is expected to be lower than market expectations, partly as a result of the acquisition of Zone 5 and a less favorable product mix.
Despite a high valuation, BofA sees significant long-term growth opportunities in air defense, missiles and drone defense.
