Indra rises after Goldman Sachs upgrade to 'buy' on attractive portfolio

** Shares in Indra IDR are up around 2.5%, pares gains after rising as much as 4%, after Goldman Sachs upgraded the Spanish defence company to "buy" from "neutral"

** The brokerage also raises the target price by c.36% to 45 euros, as it foresees a structural multi-year 'mega trend' in increased defence spending in Europe and Spain

** It's attractive and broad portfolio "will enable Indra's defence business to deliver a c.22% revenue CAGR and c.21% EBIT CAGR over 2025-29E," it says

** According to the brokerage's estimates, Indra could capture 6% to 27% of the total contract value of Spain's 30 defence programmes

** Goldman Sachs also sees room for Indra to capture revenues outside Spain, especially through JVs and partnerships

** Out of 15 analysts that cover Indra Sistemas SA, ten rate the stock "strong buy" or "buy,"​four rate "hold" and one rates the stock "sell" - LSEG data