Bae Systems Share Discussion Threads

[philanderer] 21/12/2016 13:19

Is it time to buy BAE? This Wall Street bank thinks so


BAE Systems PLC (LON:BA.) stands to be a major beneficiary of an upturn in defence spending here in the UK and in the US.

That at least is the conclusion of Goldman Sachs, which has picked out the aerospace giant as one of its top cyclical plays for 2017.

It has included the stock on its conviction ‘buy’ list with a 697p a share price target.

“BAE is particularly well positioned to take advantage this budget growth,” said the Wall Street bank in a note to clients.

It is in strong position as a contributor to the F-35 Joint Strike Fighter and builder of the Britain’s new Astute and Dreadnaught-class of submarines, Goldman pointed out.

And it says BAE is entering a “sustained period” of organic growth in the region of 4-6% between now and 2020, augmented by dividend growth of around 6% over that period.

A potential drag on performance is the sizeable pension deficit.


proactiveinvestors.com

[philanderer] 19/12/2016 13:43

A major development deal between Britain and France to build the next generation of pilotless combat aircraft took a step forward with the signing of key agreements.


The future work could involve staff at BAE Systems Military Air and Minister for Defence Procurement Harriett Baldwin MP further strengthened the UK’s partnership with France at the High Level Working Group in Paris, signing deals with her French counterpart, Laurent Collet-Billon (pictured) also on a hydrodynamics testing cooperation, and a support contract for Ajax, Warrior and French Jaguar weaponry.

Read more at:

[philanderer] 19/12/2016 13:36

The Royal Navy's fourth Astute Class attack submarine has been formally named. The new submarine was named Audacious in a traditional ceremony at the BAE Systems shipyard in Barrow-in-Furness.

[philanderer] 15/12/2016 16:06

Should please PHIL :-)


'One-third of new BAE grads to work in cyber security'

[philanderer] 15/12/2016 12:17

Jefferies downgrades from 'buy' to 'hold' tp unchanged @ 600p

Jefferies details:

We often feel too reliant upon BAE’s guidance and our guesswork when setting forecasts. In today’s detailed note, we start to build our forecasts by Domain – Air, Naval, Land and Cyber. The Air Domain is broken down primarily into: Typhoon, Tornado, Hawk, F-35, Defence Avionics and Weapons.

We can attempt to forecast the probable ebbs (Typhoon, QEII aircraft carriers) and flows (F-35, Submarines and – eventually – Combat Vehicles), and areas of subjectivity, such as Surface Ships. In short, we envisage growth in the USA, regard the UK as flat, and believe Saudi Arabia/Oman/Kuwait to be stable in the medium-term with some subjectivity from 2018.


We recognise it is possible to construct a positive big picture of rising EU defence budgets. We lean more towards a scenario of steady and slow increases, the focus initially on personnel and readiness. We question BAE’s ability to access higher EU budgets, other than through MBDA.

Further, our review of EU energy security persuades us that a Cold War scenario could have profound negative repercussions (Germany sources around 39% of its natural gas from Russia and appears to have no plan, even in the medium-term, to reduce this dependence). More rapidly rising defence budgets could be a pyrrhic victory in absolute terms.

Nonetheless, we forecast BAE to return to sustained growth from 2017. BAE has, however, almost reached our 600p price target, a valuation we deem fair.

[philanderer] 14/12/2016 17:31

U.S. Navy awards BAE Systems $368 million contract to support weapons systems on submarines

[philanderer] 14/12/2016 09:27

Questor: BAE Systems isn’t a sinking ship but its pension scheme makes it a sell

[philanderer] 13/12/2016 18:41

BAE Systems unveils ACV prototypes

December 13, 2016

YORK, PA -- BAE Systems rolled out here today the first of 16 Amphibious Combat Vehicle Increment 1.1 prototypes to the Marine Corps.

The company's offering leverages an existing platform developed by Italian manufacturer Iveco Defence Vehicles.

"As the Marine Corps begins testing, we are confident that the capabilities of these vehicles will be proven," according to John Swift, ACV Increment 1.1 director for BAE.

[philo124] 13/12/2016 07:20

Thanks phil, my LMT and RTN holdings got hit but didn't top slice; like Boeing they should recover.

Large Tech stocks his next Twitter Target imo.

[philanderer] 13/12/2016 00:25

It is unclear why Trump targeted Lockheed Martin or how or if he intends to save money on the program

Jeff Babione, the F-35’s general manager, said Lockheed-Martin “understand the importance of affordability and that’s what the F-35 has been about” in an emailed statement. “Whoever has it will have the most advanced air force in the world, and that’s why we’re building the F-35,” Babione wrote. “That’s why it’s important that the US and our partners, like the Israeli air force, have this aircraft. It’s a great value and we look forward to any questions the president-elect may have.”

Lockheed has defended the joint strike fighter program as job-creating. The firm uses facilities in 45 of 50 US states and says the F-35 program is “responsible for more than 146,000 direct and indirect US jobs”, according to the company’s website.

[barrie o bumma] 13/12/2016 00:08

"It is a democracy that has failed." lol. fascist comments. watch this video...

The Truth About Russia 'Hacking the Election'

[fangorn2] 12/12/2016 22:07

What is out of control is the US democratic system that is allowing a buffoon to become president after obvious dubious goings on in cyber land.

How is it out of control - surely that is the epitomy of democracy, that everyone has the chance of potentially winning??? And the American people have spoken.It is their democratic will he is Potus.Recounts so far have shown nothing but democrat voting fraud!

Or is democracy only acceptable when you get the outcome you deem acceptable?

F35 is massively over budget fyg - it also isnt as good as its cut out to be either!

[philanderer] 12/12/2016 16:53

Well said Minerve. This guy gets more irresponsible by the day :-(

[philanderer] 12/12/2016 15:29

‘Innovative’ BAE bucks handout trend with self-funded JOIN program

[philanderer] 12/12/2016 13:45

After running up dramatically post-Trump's victory,
Lockheed Martin shares are tumbling again this
morning after the president-elect tweeted,
questioning the costs of the company's F-35...

Donald J. Trump ✔ @realDonaldTrump

The F-35 program and cost is out of control.
Billions of dollars can and will be saved on
military (and other) purchases after January 20th.

1:26 PM - 12 Dec 2016

[philanderer] 09/12/2016 16:37

Good article, thanks Fangorn.



'BAE to Supply Retrofit Systems for Air Force’s Countermeasure Dispenser Platform'

[fangorn2] 09/12/2016 14:51

BAE Systems – the case for the defence

Donald Trump’s surprise victory in the US election boosted BAE shares - and by much more than the positive effect seen by investors in Rolls-Royce. Trump has repeatedly outlined plans to expand the US military, and BAE is a potential beneficiary. At present, the group derives 38% of sales from the US.

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It’s not just in the US that BAE have a stronger presence than Rolls. It has recently signed a $737m deal with India, and the group has a long-established relationship with Saudi Arabia. Talks around further multi-billion dollar deals are ongoing, with the group hoping to secure contracts for another 48 Eurofighter Typhoons.

In recent years, BAE’s platform services divisions, which include its war planes and ships, have struggled. The rise of terrorism has presented a new problem, and with austerity biting into defence budgets it is easy to see why demand for warplanes and jets has stalled. In this context, the potential for deals in the US and Middle East means the near term looks brighter for the group.

Outside military hardware, BAE is looking to grow its cyber security division. It makes up less than 10% of sales at present, but could quickly grow if the group can use existing relationships with governments to its advantage.

Despite falling bond yields over the first six months of the year pushing the pension deficit up by 36% to £6.1bn, 2016 has so far been a good year overall. BAE has enjoyed a steady flow of earnings upgrades, with profits for the next financial year now expected to be in the region of £1.9bn, 6% higher than expected in January

[philanderer] 09/12/2016 11:31

BAE Systems wins Australian AWD support deal

[philanderer] 09/12/2016 10:13

Army to Roll-Out First New Infantry Carrier

[philanderer] 08/12/2016 17:33

More than welcome Fangorn :-)


'BAE to build two more Royal Navy ships in £287m job-saving deal'