Chemring Group (CHG)

Sector:

Defense and Aeronautics

Index:

FTSE 250

255.00p
   
  • Change Today:
      1.00p
  • 52 Week High: 286.00
  • 52 Week Low: 167.20
  • Currency: UK Pounds
  • Shares Issued: 281.89m
  • Volume: 147,320
  • Market Cap: £718.82m
  • RiskGrade: 238

Berenberg ups target price on Chemring

By Iain Gilbert

Date: Wednesday 08 Jan 2020

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg hiked their target price on aerospace and defence firm Chemring from 200p to 235p on Wednesday, stating the group's recent full-year results had provided further evidence of the "improving quality and momentum" of the business.
Berenberg said the strong growth in underlying revenues and profits, as well as solid operating cash generation, bode well for the firm's medium-term outlook - supported by a strong order book and upside from US programs of record.

The German bank highlighted that the "strong financial performance" had "rightly" driven a re-rating of shares, which were up by 22% over the past three months and outperforming the pan-European defence sector average of 6%.

"Shares now trade on 17x 2021 P/E, which is a 20% premium to the pan-European defence sector. We view this valuation as relatively full, preventing us from turning buyers, but would use any pullback as an opportunity," said Berenberg, which kept its 'hold' rating on Chemring unchanged.

Berenberg also trimmed its earnings estimates by 1-6% over its forecast period to reflect updated sales forecasts and a 40-50 basis point cut to operating margin due to mix and higher central costs.

The analysts' cash flow estimates were also lower due to higher capex given some underspending in 2019, which together with the recognition of £7m of finance lease liabilities related to IFRS 16 meant its net debt estimate rose to £83m in 2020 versus its previous estimates of £67m-76m for 2019.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Chemring Group Market Data

Currency UK Pounds
Share Price 255.00p
Change Today 1.00p
% Change 0.39 %
52 Week High 286.00
52 Week Low 167.20
Volume 147,320
Shares Issued 281.89m
Market Cap £718.82m
RiskGrade 238

Chemring Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
81.13% below the market average81.13% below the market average81.13% below the market average81.13% below the market average81.13% below the market average
23.08% below the sector average23.08% below the sector average23.08% below the sector average23.08% below the sector average23.08% below the sector average
Price Trend
62.68% above the market average62.68% above the market average62.68% above the market average62.68% above the market average62.68% above the market average
53.85% above the sector average53.85% above the sector average53.85% above the sector average53.85% above the sector average53.85% above the sector average
Income
78.87% below the market average78.87% below the market average78.87% below the market average78.87% below the market average78.87% below the market average
80% below the sector average80% below the sector average80% below the sector average80% below the sector average80% below the sector average
Growth
24.47% above the market average24.47% above the market average24.47% above the market average24.47% above the market average24.47% above the market average
38.46% above the sector average38.46% above the sector average38.46% above the sector average38.46% above the sector average38.46% above the sector average

What The Brokers Say

Strong Buy 3
Buy 1
Neutral 1
Sell 0
Strong Sell 0
Total 5
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Chemring Group Dividends

  Latest Previous
  Interim Final
Ex-Div 20-Aug-20 02-Apr-20
Paid 11-Sep-20 24-Apr-20
Amount 1.30p 2.40p

Trades for 07-Aug-2020

Time Volume / Share Price
16:36 10,000 @ 255.00p
16:36 10,000 @ 255.00p
16:35 70,252 @ 255.00p
16:29 126 @ 256.50p
16:29 412 @ 256.50p

Chemring Group Key Personnel

Chair Carl-Peter Forster

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