The BAE Systems share price continues to go up as fundamental news continues to favour and paint a rosy picture of the company. According to recent reports, BAE Systems is expected to resume production of its M177 howitzers due to the increased interest due to the current war between Russia and Ukraine.
The reports indicate the company is already in talks with the U.S. Army over restarting the production of the M177s. The company, however, has indicated that the production is likely to take between 30 to 36 months before the production is fully restored because they will need to find new suppliers of titanium and other lightweight materials that go into building the howitzers.
Recent reports also indicate the company has received a contract worth $383 million to perform technical and sustainment services for its fleet of Bradley Fighting Vehicles and M993 Multiple Launch Rocket System carriers. The company has also been awarded a $17.9mn contract from the U.S Navy to provide logistics engineering and integration support.
The company has also opened a new $150 million Texas facility dedicated to manufacturing. The new facility includes office space, engineering design and a laboratory. It will also house an expansion space, allowing for the company’s future growth on the campus.
In today’s trading session, the BAE system share price is down by less than 0.5 per cent, extending a bearish trend that resulted in the company’s value dropping by a percentage point yesterday. Despite the drop, the BAE Systems share price remains bullish for the long term, and the current price drop is likely a pullback.
Therefore, I expect it to recover and continue with its bullish move. We will likely see it trading above October’s price high of 854.8 in the next few trading sessions. However, a drop below 800p will invalidate my analysis.
This post was last modified on Oct 11, 2022, 13:51 BST 13:51