BAE upgraded as West plans defence budget boosts
Renewed Government vigour on defence adds to potential ESG rethink to leave BAE undervalued - Citi
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LON:BA
BAE Systems delivers a range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and customer support services.
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Renewed Government vigour on defence adds to potential ESG rethink to leave BAE undervalued - Citi
BAe Systems jumped 14% and Qintetiq 12% as JP Morgan predicted big spending in creases across Europe
Investors might reassess the role weapons makers play in protecting peace and democracy
The company said its defence and security capabilities “remain highly relevant in an uncertain global environment with complex threats”
The move by JP Morgan had only a modest impact on the respective share prices
Bohemia Interactive Simulations develops high-fidelity, cost-effective training and simulation software products and components for defense applications
The defence contractor said supply chain constraints have not materially impacted on its operations, but that it continues to mitigate against such challenges
UBS estimates BAE has derated by more than 40% due to the rising ESG pressure
Boss Charles Woodburn sees the wider space market as “a big opportunity for us”
Mostly used by the British and Brazilian governments, they were designed to protect companies key to national security from international takeovers
BAE has around 5,000 staff employed on the Typhoon
Free cash flow is healthy despite the group topping up the pension pot by £1bn recently
Pension funding and accounting deficits have reduced materially since the end of last year
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The UK's index of leading shares closed down 84 points at 6,950. FTSE 250 slid 98 points, to 22,234
Revenue in the year to end-December rose 5.5% to £19.3bn
It promises to be a busy day, Thursday's diary is packed with blue-chip names.
A new national Artificial Intelligence Agency was also announced, along with the creation of a National Cyber Force and a new ‘Space Command’
Germany last week ordered 38 Eurofighter aircraft, which the UK contractor said was 'significant' for the consortium
One of the reasons for the discount is the market's expecting “Joe Biden will win the US election and seek to cut US defence spending”
Jefferies’ number crunchers said that if BAE is “roughly handled by adverse sentiment, a powerful backstop would be a spin-off of Electronic Systems”, which is worth £10bn