BofA Merrill Lynch downgrades BAE Systems
BAE Systems
1,387.50p
10:30 07/06/24
-0.47%
-6.50p
BAE Systems was under the cosh on Monday after Bank of America Merrill Lynch downgraded shares of the defence company to ‘neutral’ from ‘buy’.
Aerospace and Defence
11,422.75
10:30 07/06/24
-0.63%
-71.92
FTSE 100
8,237.14
10:30 07/06/24
n/a
n/a
FTSE 350
4,540.55
10:30 07/06/24
n/a
n/a
FTSE All-Share
4,496.33
10:30 07/06/24
n/a
n/a
The bank said that after a very strong run driven by positive revisions and a re-rating, it sees limited near-term valuation upside. The shares are up 23% year-to-date.
BofA noted that BAE has the "most attractive" capital allocation within the EU defence sector.
At 1405 BST, the shares were down 3.5% at 1,345.50p.