Chemring Group - still offering strong upside, now 522p, TP 620p

Mark Watson-Mitchell
Feb 24
2 min read

Mark Watson-Mitchell - 24.02.2026

Last Friday, following the publication of its AGM Trading Update, the shares of the Chemring Group (LON:CHG) were driven down by traders taking them from the 536p level achieved on Thursday, to a low of 493p the next day.

I could not see the reason why the market had taken them down, so I shouted that at 496p they offered a cheap buying opportunity and that investors should take advantage of the bargain on offer.

There was a massive 2.6m shares dealing volume that day, closing the week at 510p.

Yesterday, Monday 23rd February, they eased to 500p, before clsoing unchanged on the day at 510p.

The Business

Chemring designs, develops, and manufactures technology solutions for the defence, security, and safety industries.

Its products include sensors, countermeasures, and energetic systems such as to detect and disable threats like IEDs, unexploded ordnance, and chemical and biological threats; products to protect aircraft, ships, and land platforms from guided missile threats; pyrotechnics and ammunition for use in the navy, army, and air force and energetic systems components for the space sector, including propellants, explosives, missile and ammunition components, and thrusters.

Management Comment

With the AGM Trading Update, CEO Michael Ord stated that:

"Chemring is well positioned to benefit from rising defence spending across NATO and allied nations, evidenced by our record order book and a strong pipeline of opportunities, and we will continue to invest in our business to capture further growth.

For FY26, our outlook is unchanged."

My View

Today, the shares have been up to 533p, before some traders pulled them back to the current 522p.

I still consider them undervalued, especially given the record Order Book.

My latest Target Price will soon be achieved.