Market's view on BAE Systems
Published on April 2024
- BAE Systems has detailed plans for Project Spartan, a new four-storey research facility in Barrow, Cumbria, aimed at developing advanced submarines for the Royal Navy.
- Some stock watchers speculate recent share price volatility in defence stocks may be linked to the Labour Party’s non-commitment to a 2.5% defence spending target.
- Observations have been made on the consistent downward trend in certain stock portfolios, described humorously as a “sea of red.”
- There is a discussion about hybrid technology in transit, highlighting BAE Systems and Cummins Inc.’s collaboration on a hybrid-electric diesel engine and drivetrain set for a 2027 launch.
- Concerns have been voiced about the UK’s financial strategy, focusing on national debt and the feasibility of increased defence spending without raising taxes or incurring more debt.
- Predictions have been made about significant future rises in BAE Systems’ share price, with expectations reaching as high as £20 within a few years.
- There is political scepticism regarding the impact of governmental announcements on defence spending, with some questioning the practical implementation of these plans.
- A call for increased investment in defence shares has been made, emphasising the potential for substantial government spending in this sector by 2030.