<div id="readability-page-1">11:14 AM EST, 12/11/2025 (MT Newswires) -- Elbit Systems' ( ESLT ) broad capability and exposure to high-growth markets position it to benefit from rising global defense spending, Morgan Stanley said in a Thursday note.The company's &#34;diversified portfolio of battle-tested&#34; offerings provides a solid &#34;proof-point&#34; for clients on product effectiveness, the firm said. It is likely to play an impactful role in Europe's Readiness 2030 initiatives, according to the note.Elbit's ( ESLT ) roughly $25.2 billion backlog position at the end of Q3 offers visibility into the company's revenue growth, analysts wrote.The company also has margin expansion opportunities based on a combination of economies of scale as it continues to ramp its topline, mix shift from growth in high-margin segments, and operational excellence measures, the brokerage stated.Morgan Stanley said it expects adjusted earnings per share of $12.63, $14.05, and $15.80 in 2025, 2026, and 2027, respectively, for Elbit ( ESLT ).The brokerage said it initiated coverage of the stock with an equalweight rating and a price target of $531 per share.Price: 517.01, Change: +16.29, Percent Change: +3.25 MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.</div>

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Morgan Stanley notes that Elbit Systems is well-positioned to benefit from rising global defense spending due to its diversified portfolio and high-growth market exposure. The company has a $25.2 billion backlog and opportunities for margin expansion. Morgan Stanley forecasts adjusted EPS of $12.63, $14.05, and $15.80 for 2025, 2026, and 2027, respectively, and initiated coverage with an equalweight rating and a $531 price target.

Elbit Systems Poised to Benefit From Rising Global Defense Spending, Morgan Stanley Says