Berenberg slashes QinetiQ price target, reiterates ‘buy’ rating
QinetiQ Group
374.60p
17:15 20/03/25
Berenberg slashed its price target on QinetiQ on Wednesday to 500p from 610p to reflect lowered estimates, but reiterated its ‘buy’ rating.
Aerospace and Defence
15,749.69
17:09 20/03/25
FTSE 250
20,097.98
17:09 20/03/25
FTSE 350
4,749.79
17:09 20/03/25
FTSE All-Share
4,697.93
16:44 20/03/25
The bank said QinetiQ has been affected year-to-date by a slowdown in activity in its UK Intelligence, and US federal IT and product businesses.
"The net effect of new guidance issued following the group’s recent profit warning is a circa 10% cut to FY 2026 earnings per share forecast, on our estimates," it said.
Berenberg noted that the shares have fallen 25% since the announcement and trade on 12x 2025 price-to-earnings for a 15% three-year EPS compound annual growth rate, which is a 35% discount to UK defence peers.
"It will take time for confidence to be restored, although the improved UK defence budget outlook and more focused US business help underpin our mid-term estimates," it said.
At 1110 GMT, the shares were down 3.8% at 380.38p.