We Maintain BAE Systems' Fair Value Estimate

BAE Systems enjoys incumbent positions on a diverse set of major global defense programmes. Defense spending in the U.S., a key market for BAE, declined for nearly a decade since the end of the Iraq war in 2011. The outlook for defense spending is positive with rising budgets in the U.S. and commitments from NATO partners to meet their minimum spending requirements. BAE Systems is well aligned with U.S. Department of Defense growth programmes.