BAE Systems - Growing

Friday tips round-up: BAE Systems, White Nile,Wilson Bowden

Fri, 23rd Dec 2005, 06:36

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What better Christmas present for 14,000 of BAE Systems' employees than the news that Saudi Arabia is to buy up to 72 Eurofighter Typhoons to modernise its air force?

It could turn into a very lucrative contract, worth between £8bn and £10bn with the indications that this will be a partnership with recurring revenues, rather than a one-off.

Even with earnings upgrades in the offing, BAE is still cheaper than its peers and appears to have the wind beneath its wings. Buy says the Times.