BAE Systems (OTC:BAESF)(GB:BA) is evaluating restarting the production of its M777 howitzers due to the increased interest arising from the Russia-Ukraine conflict, the Wall Street Journal reported.
The WSJ report highlighted that BAE is holding talks with the U.S. army over restarting M777 production. It may take 30 to 36 months to renew the M777’s production. Importantly, BAE will need to find new suppliers of titanium material and lightweight components for the weapon.
What Does BAE Systems Do?
Headquartered in London, UK, BAE Systems Plc engages in the provision of a full range of products and services for air, land, and naval forces, including advanced electronics; security, information technology solutions; and support services.
As per TipRanks, analysts are cautiously optimistic about the stock and have a Moderate Buy consensus rating, which is based on four Buys and two Holds. BAE Systems stock’s average price forecast of $11.13 implies 18.5% upside potential.
Notably, BAE stock has a “Perfect 10” Smart Score on TipRanks, indicating that the stock has strong potential to outperform market expectations.
