Buy this defense stock with ‘battlefield tested tech,’ BofA says
Elbit Systems has soared 60% so far in 2026, and is set to add further to those gains gains, according to Bank of America. In a research report out Friday, the bank reiterated a buy rating on shares of the Israeli defense company and hiked its 12-month price target to $1,075, implying a nearly 16% gain from Thursday’s close. With no shortage of demand for defense technology, analysts led by Ronald Epstein said Elbit is a unique way for investors to gain diverse exposure in the sector. “Elbit’s significant investments in R & D, CapEx, and M & A have yielded a technology portfolio required in today’s battlefield and with the capacity in place to capture the demand,” Epstein wrote. ESLT YTD mountain Elbit Systems (ESLT) in 2025. Epstein estimates that the land technology business will grow 30% in 2026 as demand for replenishing munitions grows. Elbit’s intelligence surveillance target acquisition and reconnaissance and electronic warfare business will grow by 15%, driven by development of high power laser technologies, Bank of America said. That technology is important when supplying systems such as Israel’s Iron Dome and the proposed ” Golden Dome ” in the U.S. Together, it creates a portfolio of “battlefield tested tech” for Elbit, which has market value of almost $44 billion, Epstein wrote. And while the stock has more than doubled in the past year and trades at more than 60 times forward earnings, Elbit is nonetheless positioned to extend its gains. “We view the multiple above defense peers as fairly addressing Elbit’s defense tech like capabilities and agility with the advantages of capacity and global presence of the defense primes,” Epstein wrote. Elbit, which trades on Nasdaq, is almost 4% higher this week. On March 17, the contractor closed above $1,000, reaching $1,014.33.