This report is the updated version of the report published on February 17, 2026, 09:18 AM GMT.

Cohort PLC (LSE: CHRT) is an FTSE AIM UK 50 listed holding company. Its business segments are Chess, EID, MASS, MCL, and SEA. It provides a range of services and products for the United Kingdom, Portugal, and international customers in defense and related markets. The key operations are in central Europe, Russia, North America, and South Africa. This Report covers the Key Recommendation Rationale, Conclusion, and Recommendation on the stock.

Key Recommendation Rationale – Sell at GBX 1,242.00

• Margin Compression and Profit Dip - Despite a 9% increase in revenue, adjusted operating profit edged down to £9.7m from £10.1m, with margins falling from 8.6% to 7.5%. The decline was mainly driven by a weaker mix within the Sensors and Effectors division, particularly lower-margin programme deliveries. This indicates that revenue growth is not currently translating into improved profitability.
• Weaker Order Intake Relative to Revenue - Order intake fell to £122.3m compared with £139.2m in the prior year, representing only 0.9x revenue (down from 1.2x). While the order book remains strong, the lower intake ratio could signal softer near-term demand momentum if not strengthened in the second half.
• Deterioration in Cash Position and Rising Net Debt - The Group moved from net funds of £5.3m at year end to net debt of £32.5m by 31 October 2025. This reflects working capital build-up and capital expenditure, but it also represents a significant short-term weakening in the balance sheet and increased financial leverage compared with the prior year.

Share Price Chart  

Valuation Methodology: Price/ Earnings Approach

Conclusion

CHRT is expected to trade at a discount, considering Weaker Order Intake Relative to Revenue and fears of global slowdown. For conducting the valuation, the following peers have been considered – Chemring Group PLC (LSE: CHG), Melrose Industries PLC (LSE: MRO) and others.

Given its current trading levels, Deterioration in Cash Position and Rising Net Debt, recent rally in the share price, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 1,242.00 as of 17 February 2026 at 08:07 AM GMT.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 17 February 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and/or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.