BAE Systems
There is speculation the Chancellor will commit to higher defence spending in his statement, as war in Ukraine prompts governments worldwide to review their military budgets.
One beneficiary could be BAE Systems, a £22bn British company which specialises in security and aerospace.
Analysts at the broker Berenberg ranked the stock as a strong buy. They wrote: “The outlook for defence budgets globally has improved materially following Russia’s invasion of Ukraine, and this has helped drive a dramatic shift in sentiment back in favour of the sector.”
Experts said there was now greater potential for companies in the defence sector to be included in environmental, social and governance – or ESG – investment criteria. “Against this supportive backdrop, we think the shares offer compelling value,” he said.
The analysts pinned their price target for the stock at 850p, 16pc higher than company’s current level.