Analyst David Farrell from Jefferies maintained a Buy rating on Chemring (CHG – Research Report) and keeping the price target at p450.00.
David Farrell has given his Buy rating due to a combination of factors that reflect both current market conditions and future prospects for Chemring. One of the key reasons is the positive market sentiment driven by increased European defense spending, which has already been factored into the company’s share price. This indicates that investors are optimistic about Chemring’s growth potential despite geopolitical uncertainties.
Additionally, Chemring’s Sensor & Information sector, primarily driven by Roke, is expected to play a significant role in achieving future revenue targets. Although Roke’s recent book-to-bill ratio was lower than historical levels, the company has started the fiscal year with a strong order book, covering 77% of its anticipated revenue for FY25. This solid foundation positions Chemring well for sustained growth and supports the Buy rating.
Based on the recent corporate insider activity of 10 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 CHG in relation to earlier this year.
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