No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Analysts at Berenberg said on Friday that Cohort's AGM update on 24 September was reassuring, highlighting continued orderintake momentum and improving margins across the group's businesses.
Trading in the first months of FY27 was in line with expectations, allowing the board to reiterate fullyear guidance, while the firm's order book reached a record £700m, providing around 90% cover for FY27 consensus revenue.
Berenberg said Cohort's M&A pipeline remained active, supported by recently expanded bank facilities, though it expected the board to stay disciplined on valuation multiples.
The German bank left its FY27 forecasts unchanged but lifted FY28 and FY29 adjusted earnings per share estimates by 3% to 4%, reiterating its 'buy' rating and 1,630p price target.
Recent contract wins included a 140m ELAC deal with Saab and work on Poland's Orca Submarine Programme, alongside an Italian award, which Berenberg said underscored ELAC's strong technology platform and pointed to further opportunities.
Berenberg noted that seller valuations in the wider market remain elevated-particularly in the drone segment - but not unreasonable elsewhere. It also said Cohort continued to expect an H2 profit weighting in FY27, consistent with prior guidance and FY26 seasonality, and that outeryear revenue and margin visibility had improved.
Berenberg added that Cohort's shares trade on 17.6x FY27 earnings, falling to 15.5x in FY28, with an FY28 enterprise value-to-underlying earnings multiple of 10x, a 6% freecashflow yield and a 1.9% dividend yield.
Reporting by Iain Gilbert at Sharecast.com
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.