More record highs for BAE Systems shares?
Pledges by European governments to increase military spending have helped propel the defence sector to new highs. Independent analyst Alistair Strang shares his forecasts for this industry leader.
23rd September 2025 07:46
by Alistair Strang from Trends and Targets
It was an easy decision which made us opt to review BAE Systems (LSE:BA.). We’ve had more helicopters flying low overhead on Monday evening than occurred during Covid lockdowns, when rather a few of the great and good were making their way to their homes in Argyll or superyachts parked discretely in our lochs.
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In plain English, it sounds like the military are playing games, things becoming exciting when one heavy helicopter sped low up the glen, dropping to almost water level on the sea outside before sharply rising and vanishing above the mountain in our back garden! Shortly afterward, another helicopter was heard moving extremely fast, chasing off in the direction of the initial machine. I guess we must point out the logical direction each was travelling was toward the secret nuclear submarine base or the secret NATO nuclear weapon store at Glen Douglas (a seriously scary place).
Obviously, this brings us to BAE Systems, a company whose share price has been soaring higher than missiles which have lost their guidance.
The immediate situation for BAE is fairly useful, suggesting share price growth above 2,014p should trigger another lift to an initial 2,075p and, again, some slight hesitation.
Our longer-term secondary target calculates at 2,205p, should the initial ambition be exceeded. Obviously, some patience shall be required.
If things intend to go square-shaped, the price needs below 1,760p to justify panic, calculating with the potentials of reversal to an initial 1,658p with our secondary, if broken, down at 1,530p and a very possible rebound..
From reviewing price movements, we shall not be surprised if BAE's share price decides to explore the dubious benefit of reversals.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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