BAE shares gain after winning £3.95bn submarine contract
Shares in BAE Systems gained today after the company announced it had won a near £4 billion deal to build attack submarines as part of the AUKUS joint programme between the US, Britain and Australia. IGTV’s Angela Barnes has more.
(Video Transcript)
Submarines to be used by AUKUS
Shares in BAE Systems gained today after the company announced it won a near-£4 billion contract to build attack submarines as part of the AUKUS joint programme, and that's between the US, Britain and Australia. The deal will help fund 5,000 jobs in the northwest of England.
If we look at the BAE Systems price chart today, you can see that its share price is up 1.15% in response to the news, putting it earlier at the top of the FTSE basket, reflecting markets optimism towards the deal.
BAE shares outperform market by nearly 30%
Meanwhile, Berenberg has raised its assessment of BAE stock from a hold to a buy and increased its price target. Shares in BAE have outperformed the stock market over the last year, up nearly 30%. And this has been driven by increased defence spending demand amid all the geopolitical uncertainty, including the Russia-Ukraine conflict.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
