LONDON (ShareCast) - (Sharecast News) - Analysts at Barclays Research reiterated their 'overweight' stance on stock of Chemring following the tragic incident at the firm's countermeasures facility near Salisbury on 13 August.
Their updated estimates for the rate of growth in th company's earnings per share in 2018 to 2020 were -29%, +1% and +2%, respectively, but they believed the 12% drop in the shares on the day following the announcement had been an "over-correction".

Indeed, they believed it afforded investors with an entry-point into a business with "strong" niche positions and self-help potential.

Changing hands on a 2019 price-to-earnings multiple of 15.0 and trading on an EV/EBIT multiple of 10.0, the shares did not look expensive, they said, adding that "these near-term multiples seem to overlook future self-help and mix improvement".

However, they did trim their target price by seven pence to 258p in order to better reflect on-going incident risk.

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