LONDON (ShareCast) - (Sharecast News) - Analysts at J.P. Morgan upgraded their recommendation for shares of BAE Systems on expectations for a stronger US dollar and a reduction in the UK corporate tax rate.
That was on top of potential positives including an improvement in market conditions in Saudi Arabia and higher defence spending in the UK.

"In the current fragile economic environment, we think the shares are very appealing," they said in a research report sent to clients.

To back up their view, they also pointed to the company's defensive growth profile, "solid" balance sheet, and an estimated dividend yield for 2022 of approximately 5.0%.

They also noted that over the next two months they had two corporate access events with BAE forthcoming, as well as a Capital Markets Day.

On the back of all of the above, they reiterated their 'overweight' stance on the shares and bumped up their target price by 4% to 1,000.0p.

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