Bae Systems Stock Analysis

 Bae Systems Stock Analysis

Why Bae Systems (Ba) Stock Is Rising?

If we talk about which is the best stock on the FTSE 100, that would be BAE Systems (BA) without any doubt. They had several contract wins in the last few months, which helped the share price as well.

In fact, the share price of BAE Systems gained so much that it eventually reached a new 52-week high. So, does this mean the best stock from the FTSE 100 will continue its performance? Well, that depends on how BAE Systems will handle its operations in the coming years.

Bae Systems Share Price Target Is 2,220p

key catalyst for BAE Systems was its 10 billion worth of contracts with Norway. Although it's tough to say how much BAE Systems will make from it, it's a pretty big deal nonetheless.

The deliveries will start from 2030, which means this deal alone can prove revenue for years to come. On top of that, BAE Systems is also successfully managing its backlog and has a very strategic positioning.

Considering all the good news, the banks have also raised their target price for BAE Systems. According to Deutsche Bank, the BAE Systems stock price will reach 2220p over a period of 12 months.

Looking ahead, more contract wins by BAE Systems could help the stock prices reach even new highs. With the way our world is right now, the defense budget will only increase, and that benefits BAE Systems.

Even in the short term, the BAE Systems stock is pretty good and will help you escape the eventual AI crash, too. But there are also some concerns about BAE Systems.

key risk for the BAE Systems stock is that it has to rely on government policies. So, any big change in the government plan will also dampen the growth of BAE Systems.

With all things considered, the BAE Systems stock looks like a good option based on the current situation of the world.

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