Broker tips: Chemring, Informa

Analysts at Jefferies initiated coverage on advanced technology products and services firm Chemring at 'buy' on Friday, citing a "compelling growth story".

Jefferies stated the appealing growth story at Chemring was driven by its Roke unit's exposure to the cyber-security and AI/Machine Learning market that will improve the overall quality of earnings and positions the group at the leading edge of modern-day security and defence.

The analysts, which also hit the stock with a 370.0p target price, pointed out that Chemring had undergone "a significant restructuring", which had taken the best part of a decade to complete.

However, Jefferies stated the resultant portfolio of countermeasures, sensors, and cyber technology exposed the group to select growth and niche markets, which, in its view, greatly improved its quality of earnings.

Analysts at Berenberg upgraded their recommendation for shares of Informa to 'buy' on Friday as Covid-19 as authorities around the world began lifting their Covid-19 restrictions.

In its largest market, the UK, restrictions on trade shows remained in place but other markets such as the US were now open for business, Berenberg pointed out.

So while consensus forecasts for the British publisher and conference organiser's profits needed to fall, the medium to long-term outlook remained "very solid".

"Restrictions, which have prevented the running of large trade shows, are being eased globally, and while 2021 shows will be smaller and less profitable than normal, we think they set Informa up for a substantial recovery in profitability from 2022," the analysts said in a research note sent to clients.

With a view to the solid upside now on offer on a 12-month view, the German broker also bumped up its target price from 610.0p to 640.0p.