BAE Systems was under the cosh on Monday after Bank of America Merrill Lynch downgraded shares of the defence company to ‘neutral’ from ‘buy’.
Source: Sharecast
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.
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