Broker snap: BAE Systems still defensive

10th Aug 2009 13:25

While noting that defence group BAE faces some disruption from reduced military spending in the US and UK, Charles Stanley expects the firm's diverse business base and wide geographical reach to serve it well.BAE 'continues to operate a well balance business,' with 31% of first half sales from Land & Armaments, 28% from Electronics Intelligence & Support, 24% from Programmes & Support and 16% from its international division International, the broker notes. Having fallen 12.2% over the past three months, the group is inexpensive, according to Charles Stanley.It keeps its 'buy' rating on the stock.