Update shared on 30 Nov 2025
Fair value Decreased 0.35%Analysts have slightly reduced their price targets for QinetiQ Group. Recent research cites valuation adjustments and moderate expectations for near-term upside as the main factors behind the downward revision of a few pence per share.
Analyst Commentary
Recent analyst updates for QinetiQ Group reflect a range of outlooks on the company's valuation, growth prospects, and near-term execution. The following summarizes prevailing bullish and bearish takeaways based on the latest street research.
Bullish Takeaways- Bullish analysts note that the recent selloff offers an attractive entry point, prompting some to upgrade their recommendations despite minor reductions in price targets.
- There remains continued confidence in QinetiQ’s medium to long-term growth potential, as several price targets are still well above the current share price.
- Some see valuation at current levels as compelling and believe the business fundamentals justify a positive outlook.
- The maintenance of Buy ratings by some analysts reflects confidence in management’s ability to execute on strategic priorities and deliver shareholder value.
- Bearish analysts express caution over near-term upside, citing recent price target reductions as a reflection of muted expectations for share performance in the short run.
- Slower anticipated growth and uncertain short-term catalysts have prompted several analysts to lower their price targets, even where longer-term optimism exists.
- Some question the sustainability of recent valuation levels, suggesting that execution risks could limit outperformance in the coming quarters.
- The shift in ratings from Buy to Hold by a few houses highlights lingering uncertainty regarding the pace of potential recovery and earnings momentum.
What's in the News
- The company announced an interim dividend increase to 3.0 pence per share for H1 FY25, representing a 7% rise compared to the previous period. This change aligns with the company's progressive dividend policy (Key Developments).
- The dividend will be paid on 6 February 2026 to shareholders registered as of 9 January 2026. The full year dividend proposal will be disclosed alongside full year results in May 2026 (Key Developments).
Valuation Changes
- Fair Value Estimate has edged down marginally to £5.55 per share from £5.57, reflecting a slight reduction.
- Discount Rate has risen slightly and is now at 8.11% compared to the previous 8.08%.
- Revenue Growth projection has decreased modestly, with the latest estimate at 6.67% compared to the prior 6.73%.
- Net Profit Margin is forecast to improve and is increasing from 11.40% to 11.81%.
- Future P/E Ratio has declined moderately, moving from 13.82x to 13.32x.
Disclaimer
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