Analyst David Farrell from Jefferies maintained a Hold rating on QinetiQ and increased the price target to p520.00 from p420.00.
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David Farrell’s rating is based on the current state of QinetiQ’s order book, which is notably higher than usual at the start of the year. This elevated order book cover suggests a solid revenue foundation, with expectations that it could reach around 80%. Such a strong position indicates stability, yet it also implies limited immediate upside potential, justifying a Hold rating.
Additionally, while there is potential for growth, particularly with a possible recovery in UK Intelligence contracting, the market has not yet fully factored in these prospects. As a result, the Hold rating reflects a cautious stance, acknowledging both the current strengths and the uncertainties regarding future upgrades.
Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of QQ in relation to earlier this year.