Berenberg raised its share price target to 610p and reiterated a 'buy' recommendation. "The company is... well positioned to benefit from the announced plan to increase UK defence spending to 2.5% of GDP by 2027, and the ambition to increase this further to 3% of GDP in the next parliament (up from 2.3% in 2024)," the Berengerg analysts said in a note to clients. They forecast QinetiQ to benefit from 8% compound annual growth over 2025-34 in UK procurement spending. The FTSE 250 group's US exposure is something to watch and has weighed on the shares in recent months, given uncertainty linked to the impact of Elon Musk's so-called 'department of government efficiency' (DOGE) and planned funding cuts for certain defence programmes. The US accounts for c20% of QinetiQ's revenue and the analysts estimate that the company's exposure is "diversified across different agencies – including the US Intelligence Community, the US Army and Homeland Security.