buy mggt

StockMarketWire.com
QinetiQ has acquired Meggitt Defence Systems Ltd and Meggitt Holdings Canada Inc (together 'Meggitt Target Systems') from Meggitt for £57.5m on a cash-free, debt-free basis.

Meggitt Target Systems is an international provider of unmanned aerial, naval and land-based target systems and services for test and evaluation ("T&E") and operational training and rehearsal.

The business is expected to generate approximately £28 million of revenue and approximately £5.5m of operating profit in the year to 31 December 2016.

Meggitt Target Systems provides target systems to approximately 40 countries from its operations in the UK and Canada, and performs on-site target services in 15 of those countries.

It will form part of QinetiQ's new International business unit and will be reported within QinetiQ's Global Products division.

Jefferies note today:
"Meggitt's rejuvenation has taken a lot more than a good night's sleep (high R&D and PPCs in recent years, and out to FY20). The process will not be complete for some years, but with an "unprecedented" number of parts and systems won on new aircraft/engine programmes, its efficacy should be apparent within 12 months. We raise our PT from 500p to 600p. Our recommendation moves from Hold to Buy."

JP Morgan Cazenove Buy 513.75 500.00 600.00 Reiterates

Jefferies International Buy 513.75 500.00 600.00 Upgrades