COHORT (CHRT) – Aerospace & Defence
| Price: £10.58 -3.6% | P/E: 17.6x |
| Market Cap: £490m | Yield: 1.7% |
AIM-listed defence technology group Cohort posted a mixed first-half update with revenue up but margins and EPS (earnings per share) down due to a lower-value sales mix.
Still, there were plenty of positives such as a 23% jump in operating profit at the communications and intelligence division and a sustained strong order book, which together with 1H revenue covers 94% of forecast sales for the year to March 2026.
Our View
Initially, Cohort was left behind in the dash to own defence stocks, and it took until the start of 2024 for the shares to really take off, but since peaking in June they have been in the doldrums.
Today’s sell-off isn’t a big surprise or a concern. We’ll do some more digging as the group ticks a lot of boxes for us in terms of structure, market opportunity, capital allocation and so on – the big question is valuation.
Read the press release here: https://www.cohortplc.com/investors/results-reports-presentations
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