MARKET TALK: Execution Noble Ups BAE Systems To Hold Vs Sell

28th Jul 2010 12:50

1150 GMT [Dow Jones] Execution Noble upgrades BAE Systems (BA.LN) to hold from sell as the stock nears the bottom of its 10-year P/E valuation range, reflecting market anxiety about defence budgets, particularly in the UK. Says there is a limit to the downside potential from UK budget cuts. In addition to this, expects BAE to generate 20% of its '10-'12 revenues from outside the EU and U.S., largely in the Middle East and Australia. Adds that a potential Republican takeover of the Lower House in November could help stabilize the U.S. business. Shares -0.5% at 317p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 28, 2010 07:50 ET (11:50 GMT)