This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Attractive share price breakout opens the door for a rally back towards highs of last June. Broker Berenberg upgraded the shares to Buy from Hold today. Can benefit from winning defense contracts.Decent 3.7% forward dividend yield. Non-cyclical business. Only interested in modest M&A. US tax change lowered tax rate. Qatar Hawk Typhoon trainer deal would be upside for 2018 orders.
Broker consensus is positive (only 14% Sellers) and with 61% of brokers still suggesting upside for the shares from current levels. Share price breakout may encourage upgrades by the 40% of Neutrals/Sellers. Note the consensus target of 662p (before any potential upward revisions thanks to breakout) is just below our short-term trade objective of revisiting June 2017 highs.
Next Event: H1 Results, 1 Aug;
Latest Broker 12-Month Consensus: 59% Buy, 27% Hold, 14% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 3.4 | 9.4 | 6.2 | 3.3 | -0.2 | 26.5 | 23.0 | 56.6 | 62.0 |
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