LONDON (ShareCast) - (Sharecast News) - ShoreCap termed BAE System's latest interims "a vote of confidence" and reiterated its 'buy' recommendation on the defence contractor's shares on the back of recent weakness.
"These results are a vote of confidence for the Group and supports our view that BAE Systems deserves to retain its position as the premium option across our UK defence coverage," they said in a research note sent to clients.

In their opinion, the approximately 10% downdraft in the shares from their late April highs was triggered by the U.S. debt ceiling saga and the failed Wagner mutiny.

But both were now in the rear-view mirror, they said and the macroeconomic landscape remained "favourable" for the engineer.

Among other factors, they called attention to the group's better-than-expected free cash flow during the half of £1,07bn (ShoreCap: £311m).

They also anticipated that they would upgrade their fair value estimate of 1,166.0p on the shares.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE