Equity research analysts at Barclays Capital have upgraded their investment rating on defence technology group QinetiQ (LON:QQ.) to overweight (from equal weight) believing the balance of risk⁄reward is now favourably skewed following the recent share price weakness.
The bank highlighted that the shares are down 27% from a high of 323 pence at the end of May.
Barclays outlined the basis of its overweight call as:
"EMEA Services margin risk appears manageable and within range of current market estimates. Global Products is showing signs of a return to growth. The strong balance sheet, with FY18E net cash of £190m (33pps), provides further options to drive growth."
Target remains unchanged at 285 pence per share.
At 3:03pm: (LON:QQ.) QinetiQ Group PLC share price was +3.95p at 240.15p