Morgan Stanley upgrades BAE Systems to 'overweight', sees buying opportunity
Mon, 06 July 2015

Morgan Stanley upgraded BAE Systems to 'overweight' from 'equalweight' and kept its price target at 570p, saying the de-rating was overdone.
The bank said that given the stock's defensive attractions, it was surprised at its recent undeperformance.

"Programme and defence budget concerns look overdone, creating a valuation anomaly and more than 25% upside to our unchanged price target," said the bank.

"We don't expect Typhoon production to have to slow, while any scaling back in Australia shouldn't be material," said MS. "At the same time, defence spending reviews in the UK and US should hold no fears for BAE."

It said that while it expects BAE's 2015 results to be weighted towards the second half, a solid first-half performance and outlook on 30 July could be a positive catalyst to buck the recent de-rating trend.

2% for defence

Mr Osborne says he will meet the Nato pledge to spend 2% of national income on defence - every year of this decade.

That should help!

Yes nice wee bounce on that news skinny, fingers crossed NOT dead cat,

Stop to entry for risk free trade.

Stop to 464.02 to lock in + 10

Berenberg lifts BAE Systems to buy from hold, target raised from 530p to 570p.

Stop to 474p to lock in + 20

Stop to 479.2 to lock in + 25

At least this one I have managed to call right.

This is another stock throughout this Bull Market that has managed to rally in the final quarter.

22/10/15 Ex divi date.

Chart of the week: Major breakout at this blue chip

Three times this has bounced of this line? Watching.

LATEST BROKER VIEWS

Date Broker New target Recomm.
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
6 Oct Haitong... 560.00 Buy
1 Oct JP Morgan... 435.00 Underweight
30 Sep Kepler... 475.00 Hold
21 Sep Haitong... 560.00 Buy
4 Sep Espirito... 615.00 Buy
1 Sep Barclays... 410.00 Underweight
Broker Recommendations for BAE Systems

well spotted chris
if, and remains a big if, the markets are indeed taking a turn for the better, then this could be a beneficiary, even if only on the basis of the chart

Fingers crossed cynic.

i've taken wilder punts - and lost!

Steady as she goes, nudged above 50DMA intra-day.

Don't ask, mouse is pissed. Try again below. Similar to ADN though, as long as market doesn't implode :0)