BofA Merrill Lynch downgrades BAE Systems

13th May 2024 12:59

(Sharecast News) - BAE Systems was under the cosh on Monday after Bank of America Merrill Lynch downgraded shares of the defence company to 'neutral' from 'buy'.

The bank said that after a very strong run driven by positive revisions and a re-rating, it sees limited near-term valuation upside. The shares are up 23% year-to-date.

BofA noted that BAE has the "most attractive" capital allocation within the EU defence sector.

At 1405 BST, the shares were down 3.5% at 1,345.50p.