Jefferies analyst David Farrell maintained a Buy rating on Chemring today and set a price target of p660.00.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
David Farrell has given his Buy rating due to a combination of factors related to Chemring’s medium-term growth outlook and earnings trajectory. He expects the company’s valuation to improve through 2026 as the market begins to price in two successive years of earnings per share expansion above 25% in FY27 and FY28, supported by execution of the Energetics capacity build-out and a renewed period of robust growth at Roke.
At the same time, Farrell characterizes FY26 as a transitional year rather than a catalyst for immediate forecast upgrades, noting that the upcoming AGM trading statement is unlikely to materially reduce risk around near-term estimates. Despite this lack of a short-term de‑risking event and the company having entered the year with its leanest revenue coverage since 2020, he believes the visibility on structural growth from key programmes justifies a positive stance on the shares.