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The FTSE 100 has had a rough time lately, with several international companies eyeing a move to the US. As a result, I’m wary about allocating too much capital towards certain stocks.
But one I’m not the least bit worried about is BAE Systems (LSE:BA.). And for good reason.
I’ve held shares in the global defence giant for longer than most other stocks in my portfolio. Along with Unilever, Tesco, and GSK, it constitutes a core part of my long-term, defensive strategy. These stocks tend to weather economic downturns better than others.
The share price climbed steadily since 2021 but hit a wall in the second half of 2024. Yet despite a 10% drop in the past month, I’m still bullish.
And I’m not alone. Both Deutsche Bank and Berenberg put in a Buy rating for the stock earlier this month (December 2024). The average 12-month price target is now around £15, a 27% increase from…
