Bae Share Price Uk

Bae Share Price Uk

Bae share price UK: What is driving the drop?

Introduction

The share price of BAE Systems (BAES.L) has fallen by more than 20% in the past year. This has raised concerns among investors about the company's future prospects. In this article, we will explore the factors that have contributed to the drop in BAE's share price and assess the company's outlook.

Factors driving the drop in BAE's share price

There are a number of factors that have contributed to the drop in BAE's share price. These include:

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Concerns about the global economy: The global economy has been slowing down in recent months, and this has led to concerns about the impact on BAE's business. BAE is a major supplier to the defence industry, and any slowdown in global defence spending could hurt the company's sales.

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Competition from other defence companies: BAE faces competition from a number of other major defence companies, such as Lockheed Martin (LMT.N) and Boeing (BA.N). These companies are all competing for the same contracts, and this can put pressure on BAE's margins.

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Brexit uncertainty: The UK's decision to leave the European Union has created uncertainty for businesses, and this has weighed on BAE's share price. BAE is a major exporter, and any disruption to the UK's trade with the EU could hurt the company's sales.

BAE's outlook

Despite the challenges facing BAE, the company's outlook remains positive. BAE is a well-established company with a strong track record of profitability. The company has a number of major contracts in place, and it is well-positioned to benefit from any increase in global defence spending.

In addition, BAE is taking steps to reduce its costs and improve its efficiency. The company has announced plans to cut 2,000 jobs, and it is also investing in new technologies to improve its productivity.

Conclusion

The drop in BAE's share price is a concern, but it is important to remember that the company's outlook remains positive. BAE is a well-established company with a strong track record of profitability. The company has a number of major contracts in place, and it is well-positioned to benefit from any increase in global defence spending. In addition, BAE is taking steps to reduce its costs and improve its efficiency.