 Berenberg lifts BAE Systems target price
Near and long-term growth drivers at BAE Systems (BA) remain ‘compelling217; for Berenberg.
Analyst George McWhirter retained his ‘buy’ recommendation but increased the target price from £13.60 to £14.30 on the Citywire Elite Companies AAA-rated defence group, which fell 1.5% to £11.81 on Tuesday, but has gained 13.2% over the last 12 months.
‘The growth drivers for BAE Systems continue to be its maritime division, and its armoured vehicles businesses in Sweden and the US – 33% of revenue combined,’ McWhirter said.
‘Visibility is extending in each of these areas through recent contract awards and the order pipeline will remain buoyant over the coming years.’
Restocking of military equipment linked to the conflict in Ukraine will be a boon to the group, as will ‘the demand boost from the US supplemental aid package to Ukraine’.
‘Longer-term drivers beyond this are the global combat air programme fighter jet and the Aukus submarine alliance, which will run for several decades, offering good visibility,’ said McWhirter. |
Qatar has signed a memorandom of intent for the acquisition of 12 Typhoons, good news for NW UK! |
BERENBERG RAISES BAE SYSTEMS PRICE TARGET TO 1440 (1360) PENCE - 'BUY' |
We need companies like BAE so deter war, stop oppression and bullying by the likes of Russia and China: |
airline revenues to top $1 tr, next yr despite a shortage of spares
grounding planes, but air passengers to reach 5bil in 2025
13/dec boeing to invest 1bl on speeding up 787 production
on the 13/nov the share price was 138 now 169
dyor |
FAST Labs™ research and development organization awarded $12 million contract from DARPA
The U.S. Defense Advanced Research Projects Agency (DARPA) has awarded BAE Systems’ FAST Labs™ research and development organization a $12 million contract as part of the High Operational Temperature Sensors (HOTS) program.
Many critical defense and industrial systems such as hypersonic aircraft and missiles, automotive, jet engine turbine, and oil-and-gas systems that operate in extreme temperature conditions. Current sensors have limited performance as they cannot operate in temperatures higher than 225°C. Their capability is limited by the materials that comprise the sensors themselves, the accompanying circuitry (e.g., silicon-based transistor technology) and packaging. |
"BAE Systems has won a new $2.5 billion contract to build more CV90 combat vehicles for Denmark and Sweden, the company announced Friday. Denmark has ordered 115 new CV9035 MkIIICs, and Sweden is acquiring 50 new vehicles. The deal also includes financing more vehicles bound for Ukraine." |
Europe needs to arm up. Everything sent to Ukraine needs to be replaced. This is a multi year bull mkt for defence stocks imho |
Due possibly to Trump pushing Ukraine to ending the war and sign a peace deal with Russia.
But regardless, BAE business itself is a solid and sound medium to long term hold. |
Suspicious, isn't it. Almost as though a big announcement is due and someone wants to buy cheap beforehand. |
Good old CV90 again. With news like this, I am suprised at the drop?
BAE Systems has signed individual contracts worth a total of approximately $2.5 billion with both Sweden and Denmark for new CV90 combat vehicles.
These contracts come under a new three-party framework agreement with the Danish Ministry of Defence Acquisition and Logistics Organisation (DALO) and the Swedish Defense Materiel Administration (FMV) to expand the acquisition of new CV9035MkIIIC combat vehicles for both countries. This builds on an initial contract signed between BAE Systems and Sweden’s FMV in May 2024.
Under these contracts, Denmark is procuring 115 new CV9035MkIIICs, while Sweden has agreed to acquire a total of 50 new vehicles. The agreement also includes further vehicles for Ukraine financed by the two governments. Together, this takes the total value of CV9035MkIIICs contracted under the framework agreement to approximately $2.5 billion, including spares, support, logistics, and training. |
Surprised nobody has picked up on the following from the FT:
Qatar has said it will buy another 12 Eurofighter Typhoon aircraft from Britain, easing fears of a gap in workload on the UK assembly lines for the pan-European combat aircraft.
The commitment came after this week’s state visit by the emir of Qatar during which he held talks with Sir Keir Starmer about strengthening economic co-operation between the two countries.
In a joint statement issued by Qatar on Thursday evening, the emirate said the two countries had agreed to extend the existing partnership between the Qatar Amiri Air Force and the Royal Air Force beyond 2030.
The extension, it said, would “allow for the continued development of capabilities through the training, exercises, and graduation of Qatari and British pilots in both countries”. To enable this partnership, it added, “Qatar will procure an additional 12 Typhoon jets”.
Although Qatar has not yet signed a firm contract, the news should bring a much-needed boost to BAE Systems, Britain’s biggest defence group, which assembles the aircraft for the emirate at its facility in Warton in Lancashire. In the first half of next year, the factory is due to deliver the last two jets from a previous £5bn order by Qatar for 24 Typhoons signed in 2018. |
You always need adequate human forces for many tasks though, to overview the logistics etc. on the ground.
We saw the result of the recent Russian air force actions in Syria while the rebels are advancing towards the capital. |
He's the Reserve's minister and for good reason. He's making the assumption that a future war would be fought similar to the strategy in Ukraine. NATO has superior airpower, no need for miles of trench's. He should be more worried about a ballistic missile hitting Redcar. |
Defence Minister admits British Army would be 'wiped out in six months' in major war. |
Again, labour reducing and delaying defense spending while others are arming to the teeths as Russia is becoming more and more dangerous and unexpectedly volatile.
This labour will not only bankrupt the country but transform it into a defenseless lamb in the middle of woolves. |
There could be deals in this NATOEDGE 2024 starting from tomorrow in Florida. |
I think £14 after Starmer's visit to Saudi later this month. This from FT:Speaking at a London Defence Conference event on Monday, UK defence secretary John Healey told the Financial Times that “there have been detailed discussions between the four nations for some time”, but stressed: “There’s more work to do.”
Sir Keir Starmer is expected to discuss GCAP when he visits Riyadh later this month on a Gulf tour aimed at driving investment into the UK economy. |
There is a lot of support around the level where we are now or around 1250p.
Expect a forming spike upwards as shown on the 3 highest spikes from end of August.
We could be heading to £14. |
1220p seemed like a good adding point on Friday just before the close. You wonder who Trump will be bringing into the White House next ; will he invite Putin to review the Defense budget ? |
Citi reiterates 'buy' rating on BAE Systems.
Strange that an "underperform" from Bnak of America sunk the shares 4% while a "BUY" rating from didn't have any effect.
This shows - as Trump love to say - Everything is crooked.
Mon, 02nd Dec 2024 08:14Sharecast News
(Sharecast News) - Citi reiterated its 'buy' recommendation on BAE Systems on
Monday after the shares slumped on Friday on the back of a downgrade by Bank of America Merrill Lynch.
Citi noted the shares fell around 4% "following a competitor downgrade that, we understand, highlights the risk to the US Defence budget following the creation of DOGE (Department of Government Efficiency)".
Citi said that while it understands these concerns, BAE Systems has similar expected profit growth to US peers, better free cash flow conversion, less exposure to the US DoD - therefore less risk from DOGE - and a much lower valuation, at 14.4x 2024 EV/EBIT versus the average 17.7x.
"We therefore conclude BAE Systems is a more attractive, lower risk investment and reiterate our buy recommendation," it said.
On Friday, BofA ML downgraded its stance on the shares to 'underperform' from 'neutral', citing the risk of potential US government spending cuts overseen by Elon Musk. |
BA. well regarded in the US. |
The Company is recruiting for more than 2,400 new apprentice, undergraduate and graduate roles in 2025, which will result in a record number of 6,500 in training, making up approximately 15% of its UK workforce.
An anticipated £230 million investment in education and skills next year will take the total amount spent on upskilling people across the UK since 2020 to beyond £1 billion.
The funding, which has grown year-on-year since the COVID-19 pandemic, is spent primarily on UK apprentices, graduates and experienced employees, as well as education outreach, helping to build on the Company’s reputation as a leader in growing the nation’s industrial skills base, whilst also contributing to local and national economic growth. |
Could it be something to do with Elon Musks preference for drones over F35 fighter plane?
hxxps://www.msn.com/en-in/news/world/us-deadly-fighter-jet-f-35-wreaked-havoc-in-iran-still-it-is-called-useless-elon-musk-calls-its-makers/ar-AA1uNvTE |
Blender 5725. “We see growing uncertainty around the impact of the Department of Government Efficiency on the US budget,” BofA.
And they are probably right. But googling DGE just brings up their mission to cut cost by reducing staff and bureaucracy.
Is there something else BofA state that reflects more directly on defence spend and/or BAE? |
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