BAE Systems (BA.UK) have been on an upward trend since Russia's attack on Ukraine. The situation in Europe does not seem to be cooling down and the West has decided to take concrete steps against the aggression of the Russian Federation followed by increased defence spending. Since 24 February, British arms and technology manufacturer stock has already gained nearly 25% rising from 6.0 GBP to nearly 7.5 GBP.
BAE Systems has signed a contract to supply 24 modern Eurofighter Typhoon fighters to Qatar, one of which has already arrived in Doha. The company expects orders for the versatile fighters to increase. The desire to deliver 38 units has already been expressed by Germany, which has declared increased spending on defense. From now on, Germany will allocate 2% of its GDP (around $100bn) to the arms sector. Spain is also a potential customer for further machines under the 'Halcon' programme.
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Create account Try a demo Download mobile app Download mobile appBAE Systems is also working with the US on the design of the most modern multi-role F-35 fighters. The British manufacturer increased spending on research by 10% in order to develop the UK's combat air system programme.
BAE reported sales of £21.5bn in 2021, slight increase compared to £20.9bn in 2020. The company's orders are valued at around £44bn. Last year, the company sold half of its stake in Advanced Electronics Company for around £214m to Saudi Arabia Military Industries.
BAE Systems also launched its Digital Intelligence services. Company has combined world-class digital and cyber technologies to provide customers a digital edge and secure their business. The company has opened a division with 5,000 employees in 16 countries, demonstrating the powerful demand for data collection, management and processing. The company's customers will include government, defence and commercial companies from around the world.
Digital Intelligence also follows a number of strategic acquisitions by BAE Systems, which have enhanced the company's capabilities in technology, data analytics and space exploration sectors. Most notable acquisitions :
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In-Space Missions - a UK company that designs and operates satellites and advanced satellite systems;
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PPM Power - a manufacturer of modern electronics
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Techmodal - consultancy, cost modeling, analytics and software development services across defence, commercial and public sectors.
Looking at the BAE Systems (BA.UK) chart from a technical point of view, the stock managed to break above the upward channel, and also broke above the key resistance zone at 6.8 this week. Currently 7.56 should be considered as the nearest resistance, which coincides with 127.2% Fibonacci retracement of the recent downward wave. If this level is broken, the next target for buyers is located around 161.8% Fibo retracement. Source: xStation5
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