QinetiQ Share Price Targets Cut After Profit Warning

QinetiQ (LON: QQ.) shares faced further pressure as multiple analysts cut their price targets following the defence contractor’s profit warning earlier this week.

Deutsche Bank lowered its price target to 520p from 570p, citing delays in contract awards affecting QinetiQ’s UK intelligence and US defence businesses, as well as geopolitical uncertainty and tighter export controls that have weighed on higher-margin product sales in the US. 

However, the bank maintained its Buy rating, stating that management views the disruption as temporary and highlighted the resilience of its UK defence business, which benefits from longer-duration contracts.

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Meanwhile, Kepler Cheuvreux took a more cautious stance, downgrading QinetiQ to Hold from Buy and slashing its price target to 436p from 532p. 

The firm noted that 2025-26 adjusted earnings estimates have been cut by 18% and 10%, as the profit warning suggests a slower growth outlook and lower margins than previously anticipated.

Meanwhile, Berenberg also cut its price target, lowering it from 610p to 500p while keeping a Buy rating on the stock.

QinetiQ shares fell over 20% on Monday following the warning and are now down more than 26% over the past week.

The company cited weaker-than-expected growth, contract delays in the UK defence intelligence sector, and a £140 million write-down due to restructuring and difficult conditions in its US business.