• Mark Watson-Mitchell

Chemring Group - Peel Hunt sees continuing improvement

Defence contractor Chemring (LON:CHG) is ‘fundamentally’ improving and Peel Hunt expects this to continue.


Broking analyst Henry Carver reiterated his ‘add’ recommendation and kept his target price of 280p on the shares.


An update from the group confirmed that the 2020 profit before tax was at the top of the range.


The analyst went on to state that ‘This is the second year of strong cash generation in a row, and a sign of fundamental, long-term improvement....it is the cash performance that stands out for us.’


‘The business continues to fundamentally improve and we see more to come, helped by a solid demand profile for both sides of the business. We don’t believe this is adequately reflected in a price/earnings of 19x 2021.’




Recent Posts

See All

Hollywood Bowl (BOWL) is too cheap considering the ten-pin bowling operator continues to outperform, says Berenberg. Analyst Owen Shirley retained his ‘buy’ recommendation and target price of 350p on

Ventilation group Volution (FAN) has delivered strong 2022 numbers and Berenberg believes this puts it on track to narrow the valuation gap with its European peers. Analyst Lushanthan Mahendrarajah re