Forecast For Bae Systems

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Forecast For Bae Systems

12-Month Forecast For Bae Systems And Rolls Royce

The last year was just amazing for the Rolls-Royce and the BAE Systems shares. Now, investors are wondering where these shares will be in the next 12 months.

For starters, the BAE system has gained 41% while the Rolls-Royce has gained 121% in the last year. Over a span of 5 years, BAE Systems has gained almost 270% while Rolls-Royce is up by 1240%.

Both Stocks Are In Green

Both of these firms have also released their results recently, which also point to more good things. For starters, the sales of BAE Systems have gone up, and the same is true for Rolls-Royce.

Recent data shows a 13% increase in the revenues for Rolls-Royce. This means the revenue of Rolls-Royce is now sitting at 9.06 billion. At the same time, the free cash flow of the firm has also gone up.

After asking 16 analysts about the 12-month target for BAE Systems, the average price was 1,813.5p. This means BAE Systems can gain an upside of almost 16% in the next 12 months.

Just like that, the analysts are also bullish on the Rolls-Royce stock price. They have set an average price target of 1048p, which means an upside of around 1.6%.

Looking ahead, Rolls-Royce can also drive growth from its narrow-body aircraft engines and small nuclear reactors. If the firm can manage these new areas, its growth will reach new highs.

On the other hand, BAE Systems is also looking good, but it has a P/E of almost 26.3. But given the strong contracts of the firm, it can manage just fine.

Meanwhile, the market cap of Rolls-Royce is around 90 billion. So, if you are thinking that the share price of Rolls-Royce will double this year, think again.

When comparing these two stocks, it becomes clear that BAE Systems is a far better choice. But if the Rolls-Royce can expand into new sectors, it could also deliver great performance.

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