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Bullish BAE Systems bucks trend
By Harriet Mann | Thu, 12th November 2015 - 17:03

LATEST BROKER VIEWS

Date Broker New target Recomm.
13 Nov Investec N/A Sell
13 Nov JP Morgan... 465.00 Neutral
13 Nov Barclays... 410.00 Underweight
10 Nov Jefferies... 600.00 Buy
9 Nov JP Morgan... 435.00 Underweight
9 Nov Berenberg 570.00 Buy
29 Oct Haitong... 560.00 Buy
29 Oct Credit Suisse 460.00 Neutral
28 Oct Exane BNP... 490.00 Neutral
19 Oct Barclays... 410.00 Underweight
Broker Recommendations for BAE Systems

LATEST BROKER VIEWS

Date Broker New target Recomm.
18 Nov Haitong... 560.00 Buy
18 Nov Berenberg 570.00 Buy
13 Nov Investec N/A Sell
13 Nov JP Morgan... 465.00 Neutral
13 Nov Barclays... 410.00 Underweight
10 Nov Jefferies... 600.00 Buy
9 Nov JP Morgan... 435.00 Underweight
9 Nov Berenberg 570.00 Buy
29 Oct Haitong... 560.00 Buy
29 Oct Credit Suisse 460.00 Neutral
Broker Recommendations for BAE Systems


Stop moved up to 470p. Looking a bit toppy. But ironically present time seems a no brainer to be long in both BA. and MGGT. Trend is your friend till it isn't.

These had a leg up after Friday's events, I meant to have had a look but other things to think about.

Even the likes of Chemring following the same path.

Whole sector up Stan, but you know the old saying, buy low sell high. Just make sure you have a good stop and in this market a day never mind a week is volatile. :0)

Stop to 479p

BA. should have set a limit @ 490p breached it yesterday, having a another attempt today. Stop still @ 479p.

Good call here Chris .

Fingers crossed jimmy, had a good run.

BAE Systems shares rise after Investec upgrades to buy
Sharecast


LONDON (ShareCast) - (ShareCast News) - Shares (Berlin: DI6.BE - news) in BAE Systems (LSE: BA.L - news) are up after Investec (LSE: INVP.L - news) upgraded the stock from 'sell' to 'buy' on Friday, as well as upgrading the target price from 410p to 530p. It (Other OTC: ITGL - news) comes a day after the FTSE 100 company announced it won an extension to its nuclear submarine deal from the UK Ministry of Defence, taking the value of the work on the Astute-class vessel to £1.3bn.
Investec said that BAE stands to benefit from the UK's Strategic Defence and Security Review (SDSR) out next week, which will clear up the country's defence and security priorities.
"The UK Government's "prosperity agenda" suggests the SDSR rhetoric may be more favourable to UK suppliers than previous reviews.
"A decision, as part of the SDSR, to extend the lives of the RAF's Tornado and Eurofighter Tranche 1 aircraft could also be positive." Investec also noted that the approval of a two-year US defence budget should help reduce uncertainty across the Atlantic for the company.
In addition, it said that there had been some bad news for the company recently, but the impact was smaller than expected and is now out of the way.
"BAE does not expect a follow-on order for Eurofighters from Saudi Arabia in 2015 and has decided to slow down production from 2016.
"The cut in production rates is in line with our forecasts, but encouragingly the financial impact will be smaller than we expected." Morgan Stanley (Xetra: 885836 - news) sees opportunities "We think the SDSR needn't pose any risks to BAE,and may in fact present some new opportunities," analysts at Morgan Stanley chipped in.
Among those opportunities, the broker pointed out the possibility of work in upgrading the RAF's Tranche-1 Typhoon jets, in the absence of which IHS Jane's in July said the UK's combat fleet levels could to historical lows.
Greater clarity on the final order size for the next generation F-35 air superiority figher would "be supportive for the long-term outlook" of BAE. Nonethless, a final decision was not expected until 2017.
Yet the biggest prize in the pipeline, with the Main Gate decision scheduled for 2016, was the Successor nuclear programme for the production of focur nuclear-powered submarines. That would be worth around £15bn in sales for BAE, analysts Jaime B Rowbotham and Joseph Ayoola said.

LATEST BROKER VIEWS

Date Broker New target Recomm.
20 Nov Investec 530.00 Buy
18 Nov Haitong... 560.00 Buy
18 Nov Berenberg 570.00 Buy
13 Nov Investec N/A Sell
13 Nov JP Morgan... 465.00 Neutral
13 Nov Barclays... 410.00 Underweight
10 Nov Jefferies... 600.00 Buy
9 Nov JP Morgan... 435.00 Underweight
9 Nov Berenberg 570.00 Buy
29 Oct Haitong... 560.00 Buy
Broker Recommendations for BAE Systems

Stop to 489p

Latest broker views


Date

Broker

New target

Recomm.


24 Nov Jefferies... 600.00 Buy
20 Nov Investec 530.00 Buy
18 Nov Haitong... 560.00 Buy
18 Nov Berenberg 570.00 Buy
13 Nov Investec N/A Sell
13 Nov JP Morgan... 465.00 Neutral
13 Nov Barclays... 410.00 Underweight
10 Nov Jefferies... 600.00 Buy
9 Nov JP Morgan... 435.00 Underweight
9 Nov Berenberg 570.00 Buy

Broker Recommendations for BAE Systems

Now at 2008 highs, if rally continues breakout within touching distance. Stop on spread bets @ 499p

Trying for the third time to break 500p. Needs volume, get going Santa :0)

LATEST BROKER VIEWS

Date Broker New target Recomm.
6 Jan RBC Capital... 630.00 Top pick
5 Jan Haitong... 560.00 Buy
4 Dec Deutsche Bank 505.00 Hold
24 Nov Jefferies... 600.00 Buy
20 Nov Investec 530.00 Buy
18 Nov Haitong... 560.00 Buy
18 Nov Berenberg 570.00 Buy
13 Nov Investec N/A Sell
13 Nov JP Morgan... 465.00 Neutral
13 Nov Barclays... 410.00 Underweight
Broker Recommendations for BAE Systems

Questor share tip: Hold your ground and buy defence giant BAE Systems
BAE's shares have had a good run but there's more value to be had in retaining the current position

BAE Systems
505.5p -7p
Questor says Buy
Having tracked lower for most of last year, shares in BAE Systems, the world’s second-largest defence company, spiked in November as it settled concerns about one of its major projects. Questor last looked at BAE in August, rating it a buy at 446p. It’s time to review that position and work out whether to advance, retreat or hold the ground.
BAE is one of the partners in the Typhoon fighter project and there had been worries about whether the company would be able to keep the production line going, with orders running out.

But BAE ended uncertainty about this in November, announcing it was cutting the production rate, meaning the line would continue until 2020, giving it more time to find buyers.
This move “effectively de-risked the programme until the end of the decade”, according to RBC’s Robert Stallard, who has named BAE as a top pick.
Saudi Arabia, seen as the most likely customer for more Typhoons, has yet to place a new order, but rising tensions in the Gulf could push this up Riyadh’s agenda, and the rate cut looks a smart move.

The company is also a partner in building F-35 Lightning II fighters, the world’s biggest defence project. While controversy remains over the jet’s performance, the programme is too big to fail and will be made to work by military buyers. With BAE building about 15pc of each F-35, it’s going to be one of the company’s flagship projects.

Credit Suisse summary today:
"We downgrade BAE Systems to Underperform (from Neutral), with a target price of 470p (vs 460p). Adopting an underperform rating on a defence stock is not easy in the current stock market and geopolitical environment, but BAE Systems is not our preferred one in this segment (Thales, O/P, EUR80 TP is), in particular after its recent strong performance."