MARKET TALK: Investec Increases Chemring Price Target

25th Jun 2010 12:06

1106 GMT [Dow Jones] Investec increases Chemring (CHG.LN) price target to 4150p from 4000p after announcing it is to acquire two operating units of Allied Defense Group (ADG). Estimates that the acquisition will enhance earnings by 4.5% in the first full year. Meanwhile, notes that the market was unsettled by a 3% decline in organic revenue growth in 1H. But thinks despite this set-back and the challenging macro environment, Chemring has opportunities to grow. As a result, expects continued positive earnings momentum. Has buy rating. Shares -0.3% at 2990p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 25, 2010 07:06 ET (11:06 GMT)