BAE Systems (LSE: BA.) has surged more than 280% over the past five years, yet City brokers continue to back the stock for further gains.
Analysts hold an average price target on BAE Systems shares of 2,322p, which sits around 11% above current trading levels, reflecting strong ongoing conviction.
The company’s latest trading update pointed to strong operational and financial performance so far in 2026, with full-year guidance maintained across the Business.
BAE Systems also flagged increased defence spending across all its key markets and described itself as well positioned for growth over the medium term.
One potential concern for investors centres on valuation, with the stock currently trading on a forecast price-to-earnings ratio of 25, which many will view as fully valued.
The defence sector has historically been cyclical over the long term, raising questions about whether this remains an ideal entry point for new investors.
That said, shifting global dynamics suggest years of sustained defence growth could still lie ahead, keeping BAE Systems firmly on the radar for many analysts.
RELX (LSE: REL) has attracted even stronger broker enthusiasm, with 14 out of 15 analysts tracked issuing a Buy recommendation on the stock, and the remaining analyst holding at neutral.
The average analyst price target for RELX stands at 3,618p, representing approximately 50% upside from the share price at the time of writing.
CEO Erik Engstrom pointed to artificial intelligence as a key growth driver in the company’s full-year 2025 results, stating: “The continued evolution of artificial intelligence is enabling us to add more value to our customers, as we embed additional functionality in our products, and to develop and launch products at a faster pace, while continuing to manage cost growth below revenue growth.”
An April trading update reinforced that message, with the company noting: “Strong underlying revenue growth continues to be driven across segments by our deeply embedded, AI-enabled analytics and decision tools.”
RELX trades on a forward price-to-earnings ratio of 19, which some analysts argue could represent good value if the company proves a long-term beneficiary of the AI boom.
The company has also raised its dividend for 15 consecutive years, though the yield remains modest at under 3%, appealing to investors seeking income alongside growth exposure.