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."

BA. report full year results next Thursday. RR. took me by surprise yesterday after their recent profit warnings. If this rally continues and not confident it will, may be worth a punt leading up to results for a trade. Have a Limit Buy waiting @ 471p spread bet. If triggered tight stop, target 500p

LATEST BROKER VIEWS

Date Broker New target Recomm.
12 Feb Deutsche Bank 505.00 Hold
11 Feb Deutsche Bank 505.00 Hold
2 Feb Haitong... 560.00 Buy
29 Jan Barclays... 410.00 Underweight
29 Jan Jefferies... 600.00 Buy
26 Jan Goldman Sachs 659.00 Buy
20 Jan Berenberg 570.00 Buy
19 Jan Haitong... 560.00 Buy
19 Jan Jefferies... 600.00 Buy
19 Jan Credit Suisse 470.00 Underperform
Broker Recommendations for BAE Systems

BAE brings in Charles Woodburn as heir apparent to chief executive Ian King
Defence giant BAE Systems is expected to announce Charles Woodburn as its new chief operating officer early next week

By John Ficenec2:20PM GMT 13 Feb 2016

BAE Systems is to announce Charles Woodburn as its new chief operating officer early next week as the defence giant prepares for chief executive Ian King to hand over the reins.
The FTSE 100 company – the world’s second-largest arms manufacturer and one of Britain’s leading exporters – is understood to have created the new role for Mr Woodburn, who will report directly to Mr King.
BAE has chosen the 45-year-old Mr Woodburn, a defence industry outsider, to bring a fresh perspective to the business, according to sources close to the matter.
Mr Woodburn, an engineering graduate from Cambridge, spent 15 years with Schlumberger the worlds largest oil services group before becoming chief executive of UK-based oil services group Expro International in 2010, according to Sky News Business that first revealed the appointment.
There is “no suggestion” that Mr King's departure from the top job is imminent, with defence sources saying that hiring a defence industry outsider and giving them time to learn the busines alongside Mr King is a very snesible move. BAE is not understood to be considering any other candidates for the role.
A final decision on who will replace Mr King as chief executive will be decided by the board at a future date.
Mr King is expected to stay as chief executive for up to two years during the succession process.


Mr King took the top job at BAE in 2008, taking over with a remit to clean up the company’s reputation which had been damaged by bribery and corruption allegations.
He joined the business when it bought Marconi in the late 1990s and held a string of senior positions including that of chief operating officer before the role was disbanded when he stepped up.
BAE will announce its annual results for 2015 on Thursday, with City analysts expected sales of £17.4bn and pre-tax profits of £1.4bn.
Shares in the defence group ended last week down 2.5pc, to 467.1p, giving BAE a market capitalisation of £14.8bn.
BAE declined to comment.

LATEST BROKER VIEWS

Date Broker New target Recomm.
15 Feb Exane BNP... 537.00 Outperform

Steady as she goes. Stop to 480p to lock in a profit.

Stop to 490p

Out the spreads @ 497p. Let's see how Full Year Results pan out tomorrow.

BAE Systems operating profits up

StockMarketWire.com

BAE Systems posts operating profits of GBP1,502m for 2015 - up from GBP1,300m last time. The final dividend of 12.5p per share takes the total to 20.9p per share for the year - an increase of 2% over 2014.

Sales1 increased by �1.3bn to �17.9bn, including a �0.8bn benefit to UK sales from increased aircraft deliveries to Saudi Arabia and sales from the trading of equipment on the European Typhoon programme and the increased activity across the naval business. Exchange translation added �0.2bn compared to prior year.

Underlying EBITA fellby �19m, to �1,683m, impacted by both the previously announced Typhoon production slowdown and Australian shipyard impairment and rationalisation charges. There was an exchange translation benefit of �15m.

Underlying earnings per share rose by 2.2p to 40.2p, including a 2.6p benefit from the previously announced overseas tax provision release and an additional 1.7p benefit from a UK tax provision release.

And the group says the large order backlog of �36.8bn underpins confidence in the future prospects for the business.



Chief executive Ian King said: "We have delivered another year of solid performance. BAE Systems has a large order backlog generated by a well-balanced portfolio of businesses serving the needs of customers in many of the world's larger accessible markets. The Group is well placed to continue to generate attractive returns for shareholders as defence budgets recover and our commercial adjacencies of cyber and commercial electronics continue to grow."



Story provided by StockMarketWire.com

BAE Systems reveals defensive qualities




By Harriet Mann | Thu, 18th February 2016 - 14:21

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BAE Systems reveals defensive qualities
With last year's sales and profits taking off, BAE Systems (BA.) is now trying to overcome a hairy start to the year. Working in industries dictated by government purse strings can be unpredictable, but with budgets recovering and efforts to expand into commercial cyber and electronics markets yielding results, the defence giant's shares remain just a stone's throw from record highs.
Higher aircraft deliveries to Saudi Arabia, including 12 Typhoon fighter jets, helped sales jump 8% to £17.9 billion in 2015, although a slowdown in Typhoon production did nip £19 million off underlying operating profit to £1.69 billion.

Fewer impairments last year and lower amortisation of intangible assets meant operating profit jumped by 16% to £1.5 billion and adjusted earnings per share (EPS) rose by 6% to 40.2p. Strip out a tax benefit and EPS fell to 36.6p in 2015, although bosses reckon they'll rise by 5-10% in 2016.

BAE won work to develop the next warfare system for the US Air Force - upgrades are worth around $1 billion. It received major contracts from the Royal Navy, including the £1.3 billion Astute Class submarine deal, and will provide another 22 Hawk aircrafts to the Saudis.



Its commercial roll-out went well, with revenue from cyber business Applied Intelligence jumped by 31%. It's expected to generate good double-digit growth in 2016, too, and the cyber and intelligence division should improve margins to within a 7% to 9% range.

In terms of guidance elsewhere, sales in the US will be around 10% lower as America shifts its naval focus from the east coast to the west and toward China. Lower Typhoon deliveries will trim sales in the UK, too, although international sales should grow by 5% as Typhoon aircraft support increases.

But at least improving national defence budgets should underpin growth at BAE in the coming years. President Obama has lifted defence budget caps by $33 billion (£22 billion) and $23 billion for 2016 and 2017 respectively, and the UK plans to spend £178 billion on equipment and support over the next decade.

"Defence is never an easy business to be in but having come through a long period when governments have been cutting back on defence spending my view is that we have now past the bottom of the trough and are on the way back up," says private consultant Howard Wheeldon.

"BAE Systems has always placed strong emphasis on research and development investment and this in terms of meeting the innovation agenda requirements together with the very large level of existing support based business that the company have leave it well placed for many years ahead. That is not to suggest that there can be any degree of complacency or that it will, along with all other defence contractors, be expected to make itself even more efficient."

It's certainly been a turbulent two months for the defence and aerospace giant, after it started the year testing all-time highs. There have already been a number of spikes in the share price and 10% swings are not uncommon.

Sharp changes in sentiment have caused the shares to yo-yo within an 80p range, closely correlating the performance of the FTSE 100 index since mid-January. An initial 2.6% rally took the shares as high as 511p Thursday, near a one-month high. They currently trade on about 13 times forward earnings and yield over 4%.

SP bang on 200DMA if it doesn't bounce then may have to close gap @ 470p in a range.

Gap nearly closed.

Question now is do you remain short or gamble on a bounce to close the gap @ 510p?
Reluctant to buy any stocks until the referendum is sorted but not ruling out trading.

Wouldn't want to be buying yet, imo. As you say, too many negative events coming up to take the risk. Watching, but not yet buying.