<strong>BAE SYSTEMS</strong><br />Bank of America Merrill Lynch rates BAE Systems a “buy” saying that the firm has three key areas which will support its long-term growth above the US and UK defence spending rate. The broker saw long-term value in the shares, but also potential further earnings downgrades. It reduced its price objective for the stock to 392p.<br /><br /><strong>LAIRD</strong><br />UBS initiated coverage on mobile component manufacturer Laird with a “buy” rating and a target price of 200p. The broker believes that, despite operating towards the lower end of the value chain, the company’s strong customer relationships and flexible cost structure result in a healthy margin performance.<br /><br /><strong>DECHRA PHARMACEUTICALS</strong><br />Dechra Pharmaceuticals reported preliminary results for the year ending 30 June which were in line with Panmure Gordon’s forecasts, but above consensus. The broker remains positive on the stock, with a “buy” recommendation and a price target of 550p, saying it is particularly impressed with Dechra’s European operations.