Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineQinetiQ confirms growth outlook
QinetiQ (QQ.) 372.4p
Gain to date: 9.2%
Original entry point: Buy at 341p, 12 December 2019
Shares’ positive view on QinetiQ (QQ.) was based upon its underappreciated transformation into an integrated global defence and security business with sustainable growth prospects.
The third quarter trading update on 4 February confirmed that the group is on track to deliver high single digit revenue growth and profit in line with expectations for the year to 31 March 2020.
US growth was boosted in January when the US Army announced its intention to award the Robotic Combat Vehicle Light program to QinetiQ. This demonstrated the strategic benefits of the recent MTEQ acquisition, a US based state-of-the-art sensing technology company.
The contract was awarded in part because of the ability of QinetiQ to leverage its sensing technology to provide a solution that ‘enables the US warfighter to overcome the next generation of threats, increase force projection, and reduce cognitive burden’.
Also in January the European Space Agency awarded the company a €75m contract to extend Europe’s capabilities in Earth observation.
SHARES SAYS: The momentum in overseas contract wins supports our case that the business is becoming far more dynamic than investors have given it credit. Keep buying.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
