BAE Systems (LON:BA) has unveiled a £20-million investment as it looks to innovate combat systems on its warships, City A.M. has reported. The news comes after the British defence contractor recently updated investors on its performance, reiterating its full-year outlook and flagging limited impact from Brexit.
BAE Systems’ share price has been little changed in London in today’s session, having inched 0.08 percent lower to 506.80p as of 10:31 GMT. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.27 percent higher at 6,979.03 points. The group’s shares have given up about 6.8 percent of their value over the past year, as compared with about a 5.8-percent drop in the Footsie.
Combat systems investment
City A.M. reported yesterday that BAE Systems has unveiled several new solutions it has been working on as part of its £20-million investment, including augmented reality glasses which would allow officers to leave the control room and still be able to see tactical data and other operational information. Other innovations could include the ability for naval ships to be controlled remotely, as well as a type of app store technology allowing crews to deploy new capabilities on-demand.
“These technologies have the potential to transform maritime warfare and greatly increase the situational awareness and efficiency of crews on board Royal Navy ships,” said BAE’s head of technology for naval systems Frank Cotton, as quoted by the newswire.
Analysts on defence giant
JPMorgan Chase & Co lifted its stance on BAE Systems to ‘neutral’ today, while trimming its price target on the shares from 695p to 625p. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 694.73p.