Analyst David Farrell of Jefferies maintained a Hold rating on QinetiQ (QQ – Research Report), reducing the price target to p420.00.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
David Farrell has given his Hold rating due to a combination of factors that QinetiQ needs to address to regain investor confidence. The company issued a profit warning in March, which has raised concerns about its financial stability and future performance. Investors are particularly interested in understanding the risks associated with the Global Solutions segment and what measures are being taken to restore double-digit revenue growth in the EMEA Services division.
Additionally, there have been significant leadership changes over the past four years, and clarity on these decisions is essential for rebuilding trust. The upcoming FY25 results are seen as a crucial opportunity for QinetiQ to provide transparency and detail on these issues. Until these questions are adequately addressed, David Farrell maintains a Hold rating, suggesting a cautious approach while preferring other companies like AVON, BAB, and CHG.