AB Dynamics: Solid Fundamentals and Cash Strength Tempered by Cyclical and Growth Uncertainties – Maintain Hold

Jefferies analyst Vanessa Jeffriess maintained a Hold rating on AB Dynamics today and set a price target of p1,620.00.

Vanessa Jeffriess has given his Hold rating due to a combination of factors that present a balanced risk‑reward profile for AB Dynamics at this stage. The latest trading update did not contain major surprises, with slightly weaker year‑on‑year order intake but a larger order book that secures roughly half of expected FY26 revenue, offering some visibility despite an unusually back‑loaded second half. She views the recent share price de‑rating as somewhat excessive, noting that long-term structural demand for the company’s products remains intact, margins are progressing back toward the 20% level, and the internal appointment of a CEO supports continuity in execution. In addition, the company’s healthy net cash position provides ample capacity to pursue acquisitions from an active M&A pipeline.

However, Jeffriess also highlights that earnings for FY26 are not fully insulated from risk, and the business’s cyclical exposure has become more evident recently. The reliance on a stronger second half and the need for a clearer return to growth temper the near‑term upside case. Until there is firmer evidence of sustained growth momentum, she sees limited justification for a more aggressive stance on the shares. As a result, the combination of supportive fundamentals but unresolved growth and cycle risks leads her to maintain a neutral, Hold recommendation on AB Dynamics.