Chemring Group (CHG)

Up
Share Price:
628.00p
Market Cap:
£1,708.96m
Change Today:
8.00p
Sector:
Defense and Aeronautics

RBC Capital Markets nudges down target price on Chemring

By Iain Gilbert

Date: Wednesday 03 Jun 2026

LONDON (ShareCast) - (Sharecast News) - Analysts at RBC Capital Markets slightly lowered their target price on aerospace and defence firm Chemring from 600p to 580p on Wednesday as it acknowledged second half execution risks still remained.
RBC Capital said demand backdrop for energetics has "become increasingly attractive", boosted by depleted US munitions stockpiles, underpinning the stock's core investment case. "This combined with an uptick in customer engagement in H1, suggests continued order book growth for Energetics," said RBC.

The Canadian bank, which has an 'outperform' rating on Chemring, said the case for incremental energetics capacity additions also remains a potential catalyst.

"While execution risk remains for H2, increased order cover at S&I is a plus point," it said, noting that management recently maintained its FY26 guidance for 70% of operating profits to come in H2.

RBC made "minor estimate changes" reflecting adjusted splits between Chemring's divisions, most notably dropping its earnings per share estimates by 4% on average on increased share count estimates.

"We had previously modelled in the £40m share buyback programme in full for FY26/27 (of which £8.7m has been completed), but now remove this from our estimates," said RBC, which noted that Chemring has paused buyback activity.

However, clearly increasing leverage was Chemring's ongoing investment into Norway, leading RBC to increase its FY26 net debt estimate to £192m - above consensus estimates of £166m.





Reporting by Iain Gilbert at Sharecast.com

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Chemring Group Market Data

Currency UK Pounds
Price 628.00p
Change Today 8.00p
52 Week High 640.00p
52 Week Low 460.00p
Volume 699,797
Shares Issued 272.13m
Market Cap £1,708.96m

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