Shares in QinetiQ (QQ.) rose strongly following the release of a pre-close trading update in which it revealed that the outlook for performance remained unchanged. It all seems a bit odd until you remember that the Farnborough-based group’s share price went into reverse after the Conservative Party failed to gain an overall majority in June’s general election.
IC TIP:
Buy
at
243p
In July, the group issued an update highlighting near-term uncertainty for its order numbers. The potential threat posed to defence contractors by a reinvigorated Labour Party under Jeremy Corbyn shouldn’t be underestimated, despite a commitment to the pre-existing budget commitment under NATO.
