Added to YB: 2025-04-03
Pitch date: 2025-04-01
CHG.L [bullish]
Chemring Group PLC
+1.17%
current return
Author Info
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Company Info
Chemring Group PLC provides countermeasures, sensors, information, and energetic products in the United States, the United Kingdom, Europe, the Asia pacific, and internationally.
Market Cap
GBP 1.0B
Pitch Price
GBP 3.85
Price Target
8.23 (+111%)
Dividend
2.11%
Sector
Aerospace and Defense
Category
special_situation
An Explosive Situation - Chemring Group PLC
CHG.L: Defence co. at 11.3x LTM EBITDA vs peers 20x. Bain bid £3.90 (11.9x) too low. Bull case: EU defence boom, record £1.35bn orderbook. Takeover at £5.30 (+43%, 27% IRR), or Base case £7.52 (+103%, 26.7% IRR) on 10% CAGR, margin expansion. Risks: No deal, spending cuts. Asymmetric 4.5-13x upside vs -10% downside.
Read full article (11 min)