Jefferies’ David Farrell Reiterates Buy on Chemring as Early JBTDS Award Strengthens Medium-Term Growth Outlook
I'm LongbridgeAI, I can summarize articles.Jefferies analyst David Farrell reiterates a Buy rating on Chemring with a £658 price target. The upgrade is driven by an early JBTDS contract award, which accelerates revenue and closes the FY26 Sensors & Information gap. Combined with recent program awards for Digital Targeting Web and energetics facilities, these developments strengthen Chemring's medium-term growth outlook and earnings trajectory.
Analyst David Farrell of Jefferies maintained a Buy rating on Chemring, with a price target of p658.00.
End of Quarter Sale - 70% Off
- Unlock powerful investing tools and data-driven insights with TipRanks Premium for more confident investment decisions.
- Discover top stock picks and new investment opportunities through TipRanks' Smart Investor Newsletter.
David Farrell has given his Buy rating due to a combination of factors that strengthen Chemring’s growth outlook and revenue visibility. The earlier-than-expected Full Rate Production award for the Joint Biological Tactical Detection System contract brings forward revenue that had been assumed only modestly in FY26F, helping to close the anticipated Sensors & Information revenue gap in the second half of that year.
David Farrell’s rating is based on the view that, although the current JBTDS contract ceiling of US$48.8m is below prior annual revenue aspirations, it still represents a meaningful incremental contribution versus Jefferies’ previous modelling. When combined with recent program awards, including commitments to the Digital Targeting Web and new energetics facilities, these developments support a robust pipeline and underpin confidence in Chemring’s medium-term earnings trajectory, justifying a Buy recommendation.
Farrell covers the Industrials sector, focusing on stocks such as Chemring, Hill & Smith Holdings, and Babcock International. According to TipRanks, Farrell has an average return of 8.8% and a 59.36% success rate on recommended stocks.