BAE Systems’ (LON:BA) chief executive says that the outlook for export orders of the Typhoon fighter jet is as good as it’s been for quite some time, Reuters has reported. The comments follow the group’s recent near £20-billion deal to build warships in Australia.
BAE Systems’ share price has climbed higher in London in today’s session, having added 0.60 percent to 675.40p of 10:29 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index having fallen marginally into the red and currently standing 0.18 percent lower at 7,648.10 points. The group’s shares have added more than 10 percent to their value over the past year, as compared with about a 3.7-percent gain in the Footsie.
Typhoon order outlook
Reuters reported today that BAE’s chief executive had said that the outlook for export orders of the Typhoon fighter jet is as good as it’s been for quite some time, with demand coming from the Middle East and Europe.
“We have a number of export campaigns in play and [...] I think the outlook for Typhoon export orders is as good now as it’s been for quite some time, both in our very important Middle East customers but also within Europe,” he told BBC Radio.
In a separate development, Bloomberg News reports that Defence Secretary Gavin Williamson will unveil a full-size model of the UK’s new fighter jet at the Farnborough International Airshow, with £2 billion to be earmarked in the 10 years to 2025 to oversee the design and build of the aircraft, which will be operational in 2035. The plane is joint venture with BAE, Rolls-Royce (LON:RR), MBDA UK and Anglo-Italian firm Leonardo.
Analysts on BAE Systems
The 17 analysts offering 12-month price targets for BAE Systems for the Financial Times have a median target of 720.00p on the shares, with a high estimate of 813.00p and a low estimate of 480.00p. As of July 13, the consensus forecast amongst 20 polled investment analysts covering the blue-chip group has it that the company will outperform the market.