The BAE systems share price and fortunes are about to change with the company tapped to sign a multi-billion pound deal for five new submarine-hunting ships.
According to reports, the company is in the final phase of signing the final phase of the agreement. The company is already building three type 26 models at its Govan Shipyard in Glasgow, which is under the £3.7bn deal signed in 2017.
It is rumoured that the deal could be completed within months of the new government’s ascension to office. With the frontrunner Liz Truss pledging an increase in defence spending to 3 per cent.
The multibillion-dollar contracts come just days after another report indicated BAE Systems had entered into a contract with the U.S. Army to build a new Cold Weather All-Terrail Vehicle. The contract, which reports indicated is valued at $278 million, will also see BAE System be the primary provider of spare parts and providing logistics for the US army.
The BAE System has also been tasked with the production of Network Tactical Common data Links for the U.S Navy. These are the system that the U.S. Navy use to simultaneously transmit and receive real-time intelligence. Although the project’s price tag is unknown, it is likely into millions of dollars.
BAE Systems Share Price Analysis
The BAE System is up by 5.5 per cent in August. Despite dropping on Thursday and Friday trading sessions, I expect the prices to continue going up.
My price expectation for the BAE systems is for it to start trading above the 850p price level. Part of the reason for this analysis is due to contracts the company has signed this month that has seen its share price going up. With the anticipation that these contracts will increase the dividends of share prices and revenue of the company, there is a high likelihood that we might see BAE System’s share price continuing to rise. My analysis will only be invalidated should the prices fall below the 805p price level.
BAE Daily Chart
