Market's view on Cohort

Published on April 2024

  • The UK’s commitment to increase defence spending to 2.5% of GDP by 2030 is seen as positive news for the sector and could benefit companies like CHRT due to the geographical proximity to Europe, where there is an ongoing war and previously neglected defence needs.
  • CHRT’s stock chart is currently viewed positively by stock watchers.
  • The CEO and Financial Director of CHRT presented a low-key style during a presentation referenced in a recent contract win announcement. The technology was praised, and there are ongoing talks for additional export orders which could be transformational for the company.
  • CHRT recently won a significant contract, which is seen as a major vote of confidence and could lead to similar wins internationally.
  • There’s a contract extension expected for SEA, with sales predicted to increase, and the share price expected to rise.
  • Discussion about the potential of a takeover bid for CHRT, with speculations on the interest it would generate if the offer exceeded a certain price threshold.
  • CHRT announced a major £135m contract with the UK’s Ministry of Defence for Electronic Warfare Counter Measures, significantly boosting their order book and leading to raised revenue and EBITDA forecasts for upcoming fiscal years.
  • Forecasts for 2025 show only a 4% increase in EPS for CHRT, with stock watchers hoping for upward revisions to spur the share price higher.
  • The defence budgets globally are increasing, suggesting more upside potential for CHRT.
  • Recent volatility in CHRT’s stock is noted, with hypotheses on share liquidity and spread fluctuations discussed.
  • A technical analysis observation mentions a potential “head and shoulders” pattern on CHRT’s stock chart, indicating possible profit-taking opportunities.
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