UK Markets closed

BUZZ-Qinetiq: CS downgrades, says "wait for acceleration"

** British engineering company Qinetiq Group's shares down >1% after Credit Suisse downgrades to "neutral" from "outperform"

** CS says earnings upgrades will require maturity on existing contracts, following guidance for a stable EBIT margin outlook by management

** Says turns less positive on Qinetiq in the current period, due to margin pressures alongside no identifiable contract wins in the near term following successful campaigns in the U.S. and the UK

** "We consider that the stock is likely to continue to have a low beta to volatility in the market," CS says

** Says its "neutral" rating is under-pinned by co's revenue visibility on key contracts such as the UK LTPA (long-term partnering agreement) to 2028 and its international growth prospects

** CS cuts PT to 325p from 345p, which still implies ~15.16% upside from its last close (Reporting By Geetha Panchaksharam)