LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg upgraded aerospace and defence firm Chemring from 'hold' to 'buy' on Friday, citing an "energetic outlook".
Berenberg said that the outlook to 2030 was "very bright" for Chemring, stating that it was becoming "increasingly difficult" to ignore the medium-term growth potential in the company's energetics division, which continues to improve, driven by a growing pipeline of expansion opportunities.

The German bank now assumes £120.0m of incremental revenue in energetics by 2030 from capacity expansion beyond the £100.0m it expects from the current programme, and said this total was "likely to be conservative".

Berenberg said Chemring's shares traded on 28x 2025 price-to-earnings ratio for a 19% three-year earnings per share compound annual growth rate. It also noted that this equates to an "undemanding" PEG ratio of 1.5x, at the lower end of European defence peers.

Berenberg also hiked its target price on the stock from 470.0p to 670.0p.



Reporting by Iain Gilbert at Sharecast.com

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE