BAE Systems Falls as BofA Sees Risk of Musk-Led Defense Cuts
- Stock drops most in two years on rare bearish recommendation
- Bank says DOGE cost cutting could affect security spending
The US is BAE’s biggest market, accounting for about 46% of group revenue.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
BAE Systems Plc shares fell the most in two years as Bank of America Corp. analysts downgraded the British defense-equipment manufacturer due to the risk of potential US government spending cuts overseen by Elon Musk.
The stock fell as much as 5.9% as a BofA team led by Benjamin Heelan cut BAE’s rating to underperform from neutral. The sell-equivalent recommendation is a contrarian call as only two other brokers have negative recommendations among 22 tracked by Bloomberg.