September 26, 2013 / 9:02 AM / 4 years ago

STOCKS NEWS EUROPE-BAE shares rise on UAE Eurofighter bid

Shares in BAE Systems rise 1.3 percent to 467.2 pence to be one of the top risers on the FTSE 100 after UBS analysts say the defence contractor has submitted its bid to supply 60 Eurofighter jets to the United Arab Emirates.

“We estimate that this order could potentially be worth 6 billion pounds ($9.6 billion) for the aircraft alone and multiples of that including training, support and weapons packages,” UBS analysts say in a Sept. 25 note, upgrading their price target for BAE to 490 pence from a prior estimate of 450 pence.

“If UAE is signed, this could put pressure on India, which would be the only export customer for Rafale and could bring Typhoon back into the picture, although India is not in our forecasts or expectations,” they say.

BAE declines to comment on the bid progress.

The company is ramping up its efforts to win business in overseas export markets such as Saudi Arabia and Bahrain to make up for falling spending in the United States and Europe, where cuts to defence budgets are causing delays or cancellations to programs.

It is vying for the UAE contract against France’s Dassault Systems Rafale fighter. India is in exclusive talks with Dassault for a deal for 123 fighter jets.

Reuters messaging rm:// ($1 = 0.6224 British pounds)

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