BAE Systems Plc shares experienced a significant decline, dropping as much as 4.5%, after being downgraded by Bank of America Corp.

Analysts have revised their rating for the British defense-equipment manufacturer from neutral to underperform due to concerns over potential US government spending cuts that could be influenced by Elon Musk.

This downgrade is notable as it goes against the majority, with only two other firms out of 224 issuing negative ratings on BAE Systems. The shift in sentiment reflects growing apprehension about the defense sector's stability in light of changing government spending dynamics.