Berenberg cut its price target on QinetiQ Group plc on Friday to 550p from 570p as it trimmed estimates after the company's first-half results.
The bank, which kept its 'buy' rating on the shares, said QinetiQ delivered a "resilient" set of H1 results despite sluggish market conditions.
"The outlook for H2 is well underpinned by the orderbook, limiting downside risk from a more prolonged slow order intake environment," it said.
"Publication of the UK Defence Investment Plan is scheduled before the end of the year; this will act as a catalyst to drive an uptick in UK defence contract flow, in our view."
Berenberg said it was lowering its revenue and underlying operating profit estimates by 1% over FY26-28, due to lower estimates in both divisions.
"The impact on EPS is cushioned by a lower tax rate in FY26 and higher accretion from the share buyback," it said.
"We lower our free cash flow estimates in FY26/27 by 15%/6% respectively, driven by restructuring costs and higher-than-expected digital investment to FY28.
"Management guided to £22m of digital investment in FY26, a lower level in FY27 and in the final year of investment in FY28."