In a report released today, David Farrell from Jefferies reiterated a Buy rating on Chemring (CHG – Research Report), with a price target of p530.00.
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David Farrell has given his Buy rating due to a combination of factors that highlight Chemring’s strategic positioning and potential for growth. The company’s alignment with the recent Strategic Defence Review is a significant factor, as the proposed actions, including substantial investments in munition and energetic plants, as well as advancements in digital targeting and cyber capabilities, are expected to benefit Chemring directly.
Furthermore, despite some uncertainties regarding the timing and funding of these initiatives, the company’s recent performance has been strong. Chemring’s revenue growth and recent contract wins, particularly in the Sensors & Information sector, indicate a positive trajectory. This, combined with the overall market performance and strategic developments, supports a bullish outlook for Chemring’s stock.