Cohort Shares: Analyst Says Company Positioned For ‘Accelerated Growth’

Zeus Capital raised its price target on Cohort plc (LON: CHRT) to 1,600p from 1,500p and reiterated a Buy rating on the stock in a note after the defence technology group reported record financial performance for fiscal year 2026.

Analyst Robin Byde noted that Cohort’s order book has reached approximately £620 million, providing “good close-in revenue visibility for FY27E.”

The firm applied a 3.2% upgrade to its FY27 adjusted operating profit estimate to £41.3 million and introduced FY28 forecasts pointing to further margin expansion.

The firm said the shares are not demanding on valuation, “particularly following recent sector profit-taking and with the prospect of accelerated growth,” noting Cohort trades on a calendar year 2027 price-to-earnings multiple of 18x, compared with 19x for the wider European defence sector on a forward basis.

Zeus Capital continues to see “strong geopolitically driven demand and rising NATO defence budgets,” with close-in order book coverage now at 88% of FY27 revenue expectations.

The firm said this should underpin management’s confidence in delivering double-digit earnings growth over the next three years, with operating margins expected to progress toward mid-teens levels by the end of the decade.

The note also highlighted improving order book quality, with revenue visibility extending through 2037 and maritime customers now representing 65% of revenue, up from 53% last year.

Zeus Capital estimated Cohort will have around £50 million of additional funds available for acquisitions following the recent renegotiation of its £175 million bank facility.

Overall, Byde believes Cohort is “positioned for accelerated growth.”