BAE Systems (LON:BA) Rating Lowered to Hold at Jefferies Financial Group

BAE Systems (LON:BA) was downgraded by equities research analysts at Jefferies Financial Group to a “hold” rating in a research note issued to investors on Monday, Marketbeat reports. They presently have a GBX 2,120 target price on the stock, up from their prior target price of GBX 2,060. Jefferies Financial Group’s price objective would indicate a potential upside of 10.30% from the stock’s current price.

Several other research analysts have also recently weighed in on the stock. Berenberg Bank reiterated a “hold” rating and issued a GBX 1,850 price target on shares of BAE Systems in a report on Wednesday, November 12th. JPMorgan Chase & Co. reaffirmed an “overweight” rating on shares of BAE Systems in a research report on Tuesday, October 28th. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, BAE Systems has an average rating of “Moderate Buy” and an average target price of GBX 2,021.40.

BAE Systems Price Performance

LON BA opened at GBX 1,922 on Monday. The business has a 50 day simple moving average of GBX 1,821.98 and a 200 day simple moving average of GBX 1,844.44. BAE Systems has a 52-week low of GBX 1,012.50 and a 52-week high of GBX 1,415.25. The company has a debt-to-equity ratio of 94.02, a quick ratio of 0.91 and a current ratio of 1.03. The stock has a market cap of £59.50 billion, a price-to-earnings ratio of 32.97, a PEG ratio of 3.33 and a beta of 0.33.

Insider Activity at BAE Systems

In other BAE Systems news, insider Ewan Kirk acquired 10,000 shares of BAE Systems stock in a transaction dated Friday, December 5th. The stock was bought at an average cost of GBX 1,678 per share, for a total transaction of £167,800. 0.14% of the stock is currently owned by corporate insiders.

Key Headlines Impacting BAE Systems

Here are the key news stories impacting BAE Systems this week:

• Positive Sentiment: Independent analysis argues BAE may still be materially undervalued versus fundamentals, supporting a longer‑term buy case if delivery schedules and defence demand remain intact. Undervaluation Analysis
• Neutral Sentiment: Jefferies moved BAE to a “hold” rating while lifting its price target to GBX 2,120 (from GBX 2,060). The action suggests limited near‑term upside in the broker’s view despite a higher valuation point. Broker Note
• Negative Sentiment: BAE staff have begun a new three‑week strike at key sites after pay talks failed; prolonged action raises the risk of production delays and extra costs on programmes that rely on the Warton and Samlesbury facilities. BBC: Three-week strike
• Negative Sentiment: Hundreds of workers in Lancashire have announced fresh strikes and protests over pay—escalation could affect throughput on civil and military contracts and increase near‑term unit labour costs. MSN: Lancashire strikes
• Negative Sentiment: Multiple outlets report targeted walkouts at Warton and Samlesbury and broader strike action tied to a pay dispute—this is an operational headwind that could pressure near‑term revenue recognition and margins if sustained. Lancashire Telegraph: Warton & Samlesbury

BAE Systems Company Profile

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Platforms & Services, Air, Maritime, and Cyber & Intelligence. The Electronic Systems segment offers electronic warfare systems, navigation systems, electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance capabilities, space electronics, and electric drive propulsion systems.