We have updated our view of Elbit Systems, accounting for the impact of IMI Systems and new announced orders on operating leverage and non-GAAP EPS. We hit on the key points that we believe will move the stock in 2018 based on how the stock has historically traded.
Attached is an updated 13-page powerpoint presentation on the key issues that will affect Elbit’s adjusted EPS and valuation.
All subscribers can access our full financial model.
While our target is $130, but we see upside up to $134 based on 20x our 2019 non-GAAP EPS of $6.72. We believe upside is limited at the moment until the company outlines synergies from IMI Systems more clearly.
