Deutsche Bank expects QinetiQ Group PLC (LSE:QQ.) to stick to its full-year targets despite delays in UK defence spending.
The broker said management remains confident that orders already on the books can carry the defence technology group to the low end of its guidance.
For the year to March 2027, Deutsche Bank forecasts sales growth of 3%, at the foot of QinetiQ’s 3–5% range, and an operating margin of 11.2%, close to the midpoint of guidance. Its £224 million full-year EBITA estimate sits just below consensus of £227 million.
The broker rates the shares a ‘buy’ with a 600p target, 17% above the 513p last close cited in its note.
It sees free cash flow yield rising from 5.8% in the year to March 2027 to 7.5% the following year.
When QinetiQ reports on Thursday, 12 November, Deutsche Bank expects first-half earnings before interest, tax and amortisation of £100.2 million, up 4.4% from £96 million a year earlier.
It forecasts earnings per share of 15.1p.
