MARKET TALK: HSBC Starts Cobham, BAE Systems At Neutral

17th Jun 2010 08:30

0730 GMT [Dow Jones] HSBC initiates coverage of Cobham (COB.LN) and BAE Systems (BA.LN) with neutral ratings 250p and 350p price targets, respectively. HSBC notes governments across the world are experiencing severe fiscal pressure as a result of stimulus spending and bailout efforts. The bank says investors fear the current slowdown in spending will become a downturn, and this has put presure on sector valuations. "Ultimately, we think a sector re-rating will depend on the direction of global defence budgets." Cobham shares -0.1% at 234p and BAE -0.6% at 324p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 17, 2010 03:30 ET (07:30 GMT)