Model Updates: CHG, CHRT, QQ

Research evidence excerpt

Model Updates: CHG, CHRT, QQ

UK | Aerospace & Defense Electronics EquityJuneResearch19, 2026

KEY STOCKS FEATURED INCLUDE:Model Updates: CHG, CHRT, QQ

Following recent updates from across our coverage universe we update our TICKER RATING PRICE TARGET

CHG, CHRT and QQ models. We continue to push CHG as our key pick in CHG LN BUY 658.00p

UK Defense, with 1H26 results giving more confidence on the FY out-turn. CHRT LN HOLD 1,300.00p

CHRT's pre-close indicated a better-than-expected FY26F, but the margin QQ/ LN HOLD 487.00p

differential between the two divisions was more pronounced than expected.

QQ continues to provide investors with attractive distributions, but the top

line growth underwhelms. KEY CHANGES INCLUDE:

TICKER RATING PRICE TARGET

An extended saga nearing a conclusion: It seems highly likely, unless there is a last-minute CHG LN BUY 658.00p (655.00p)

change of heart from the Prime Minister, that the Defence Investment Plan will be published

CHRT LN HOLD 1,300.00p (1,290.00p)

prior to the NATO Summit on 7th July, but in funding terms, will fall well short of what the UK

MoD says is required to implement the SDR (and sustain other current commitments). While QQ/ LN HOLD 487.00p (470.00p)

we had clearly hoped for a more supportive outcome, as we approach the 2nd anniversary of

the SDR's launch, it is hard for us not to view any publication as a potential clearing event, both

for industry and the equity market. The contracting environment has clearly been challenged

by uncertainty about which programmes will be prioritised in the DIP, and its release should

allow some normality to return to the contracting cycle.

Chemring (Buy, PT 658p): 1H results dispelled some concerns of a profit warning, and while