JP Morgan upgrades Cobham to 'overweight', says pullback overdone

British Engineer Cobham’s rating was lifted from ‘neutral’ to ‘overweight’ by JP Morgan, who cited a mean reversion opportunity.

JP Morgan analyst David Perry, who noted the stock was the weakest performer in the Aerospace and Defence sector, said a recent pullback on the stock might be overdone.

Perry reduced its price target by about 4% to 295p and lowered its earnings per share forecast, but left a 12% potential upside.

While Cobham’s shares were down 19% in the year to date, at 15:47 on Friday they had lifted 0.84% to 264.40p.