BAE Systems PLC

BA.: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	LOCK\|%pF	LOCK\|pN	LOCK\|K$?NMC

BAE Systems: Slightly Increasing Fair Value Due to Higher European Defense Spending

Loredana Muharremi

Jan 13, 2025

We've updated our fair value estimate for BAE Systems to GBX 1,550/USD 75 per share from GBX 1,490/USD 74 to reflect increased European defense spending catalyzed by Donald Trump's election as US president. While NATO's defense spending target of 2% of GDP has been a longstanding benchmark, we believe it is inadequate, given decades of underinvestment. Trump's call for NATO allies to raise their contributions could drive substantial increases in defense budgets. We expect European defense spending to rise from 1.7% of GDP in 2023 to 2.4% by 2029 and 2.8% by 2032.

Sponsor Center

Transparency is our policy. Learn how it impacts everything we do

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

How we make money

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your personal data

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

Verify your identity, personalize the content you receive, or create and administer your account.
Provide specific products and services to you, such as portfolio management or data aggregation.
Develop and improve features of our offerings.
Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

How we approach editorial content

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.

United States

BAE Systems PLC

BAE Systems: Slightly Increasing Fair Value Due to Higher European Defense Spending

Company Report Archive

Sponsor Center

What We Do

Company

Get Help