We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
It’s in my Defence watchlist with RR, BAE, BAB, SAAB , Thale, Lockheed M all of which all but 25-125% in the last 18months.
General swing in defence spending doesn’t look like it going to change in the short term.
O yes! RHM is an absolute juggernaut of a company, collaborates a lot with BAE (Rheinmetall BAE Systems Land). Rheinmetall also own Mauser. Forecasts see the SP steadily rising. €500 by end of 2024 is almost guaranteed.
You mentioned BAE are cheap?
They are expensive against FTSE100 which trades at 11 forward earnings.
Unless your thinking there cheap versus US counterparts LMT & NOC?
No, we invest in bae it keeps going up.
BAE shares look cheap on forward P/E 18, that’s even without a profits kick up from new acquired Balls Aerospace. I think generally the whole defence sector will be uprated too with increases in further military spending! Yes, BAE company fundamentals are on a sound footing. It’s buying Balls Aerospace that grows the company in high tech military spending areas benefiting BAE profits. Yes, short term hit to BAE cash positions and profit margins but huge prize afterwards! I think the market will re-assess BAE company fundamentals and see the shares go higher.
Alas_Smith: Agree with you. BAE company fundamentals are on a sound footing. It’s buying Balls Aerospace that grows the company in high tech military spending areas benefiting BAE profits. Yes, short term hit to BAE cash positions and profit margins but huge prize afterwards! I think the market will re-assess BAE company fundamentals and see the shares go higher.
Sadly, history is not on your side, driftking27. Every chart from the 3 month through to the 5 year shows the share price relentlessly rising. Momentum will continue and any sideways movement is likely to be of very short duration.
I am not for a moment endorsing chart analysis simply referencing visual clue
With war coming, definitely.
£14.50p BAE Target, Morgan Stanley. Overweight, up 50p on yesterday’s results. Barclays £15 BAE Target.
Dont be fooled by SPT being raised, you can’t be that daft…
Very sad that this stock being punished because other companies earning reports are good but forward guidance lacking.
Once FEDS & Government confirm new budgets then the future trend will be revisited.
This is going sideways until then.
JPMorgan raises BAE Systems price target to BUY 1,400 (1,300) pence - 'overweight
This BAE Undervalued. Other brokers will raise share targets.. These BAE shares will lift 🆙
I agree with what you say about market makers. i think it's called "shaking the tree".
Plus there's a lot of short term cash risk, buying ball aerospace, funding GCAP, tempest etc..
All risk that is getting factored in against results
Sell the news and buy the rumour.
News always allows investors to adjust portfolio to provide greater or less exposure to an individual holding/sector. I'm content that the exposure I've got to BA. is consistent with my goals and needs no adjustment. I'd like to have seen a better final dividend, but the results were largely expected based on the activity in Ukraine as well as those in the Middle East.
Shares in defence companies have higher P/E’s reflecting their higher growth prospects. BAE cites today robust growth in the mid term despite highly competitive market conditions. So the average current Footsie100 P/E ratio does not apply to BAE shares. Share prices today should be based on future P/E ratios. As regards LockHead Martin, they have their own company issues and although a competitor, they have nothing to do with BAE future growth prospects.
The reason as I have pointed out below is due to the drop in SP.
Look at the other competitors in the sector, LMT et al.
BA is trading at higher p/e and needs a slight re-rating.
The potential for further sp growth is based on guaranteed governmental / fed spending on military armoury defence.
This should be re-rated down to 1150p at least based on ftse p/e of 11.
I can see Broker upgrades coming. The shares should head higher. It’s the market makers playing games. They get people to sell at lower prices and then afterwards send the shares higher. BAE is undervalued versus it’s both current and future prospects.
..can't quite understand the collapse in SP given the results, especially as they exceed market expectations... I thought this was one of those rare SPs that actually seems to follow logic, very odd. I suspect it'll rally during the course of the day once Investors have digested the news and the forecasts - we'll see...
Outstanding results today.
I guess it was priced in. Honestly expected 8-9% up today.
Got to love the markets.
Yes Fabulous BAE Results Today ! They surpass Barclays Broker’s own targets which were at the highest of any broker results predictions, at £24.72 billions revenue, £2.67 Billions EBIT and EPS 62.2p. Actual BAE results today are much higher and so the shares are set to go much much higher on the back of these excellent results !!! BARCLAYS £15 PRICE TARGET FOR BAE SYSTEMS
driftking27, momentum is king here for now, also for bab******* and other defence sector cos.
of course, results from ba. could change things tomorrow, barclays say it could be the catalyst to send the sp much higher. their optimistic target is 1500p !!
Rheinmetall have just confirmed they are building a new munitions factory in saxony, full spectrum production of 200k shells per year, total German production 700k PA. It's a private venture as they foresee the need to overproduce to replenish the empty storage facilities. I can't quite see BA doing the same or the UK government signing off the bill, but lets hope other countries sign a contract at the very least.
The P/e of LMT is around 15.7 times 2024 earnings
BAE stands at 20 times 2023 earnings until 21st.
Think this will undoubtedly have a pull back.against FTSE it’s too high I’m afraid, though graphs say differently
Same. Been here since 2010… steady eddy. Possibly best steady eddy