BAE Systems (LON: BA) share price has been rallying since the British arms manufacturer released its half-yearly earnings reports earlier this week. BAE Systems’ sales rose by 11%, hitting £12 billion, with record-breaking backlogs standing up to £66.2 bn during the half-year. Moreover, the arms manufacturer updated its sales forecast for 2023 from 3%-5% to 5%-7%.
BAE Systems has become one of the best-performing stocks in the FTSE 100. The price of the defense contractor achieved a new all-time high of 1036p the year. The UK is expected to approve a higher defense budget than last year, which can have a substantial positive impact on BSE Systems shares.
BAE Systems Sees Rise In Demand Amid Ukraine Conflict
The British arms manufacturer has been asked to replenish its stock as the war in Ukraine continues. During the first half of 2023, a £1.8 billion contract was signed between the Czech Republic and BAE Systems to provide CV90 infantry vehicles. In other news, the defense contractor has agreed to supply Typhoon fighter planes to Saudi Arabia by 2027.
The company has also opened new facilities in three different states in the US to help cater to the increased demand for its hardware. Additionally, they also agreed to help Australia build its nuclear submarine. BAE share price currently stands at 995.4p, only 3.5% below its all-time high.
BAE Systems Share Price Breaks 969p Resistance Level
The following chart for (LON: BA) shows that the bulls successfully took the price above the critical resistance level of 969p and are now consolidating above it. If the bulls flip the 969p resistance level as support, a new all-time high might become a reality.
BAE Systems share price forecast is looking very bullish. However, a break below 969p will put a retest of 940p on the cards. In this scenario, the market may try to fill the gap created when the earnings report was announced earlier this week. After filling the gap, the price might continue to the upside.
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