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.
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