Jefferies analyst Vanessa Jeffriess maintained a Hold rating on AB Dynamics today and set a price target of p1,620.00.
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Vanessa Jeffriess’s rating is based on a combination of factors that reflect both positive and negative aspects of AB Dynamics’ current situation. The company’s recent results align with previous updates, showing stable growth and an EBITA margin expected to remain around 20%, which is a positive sign. Additionally, there is potential for growth through mergers and acquisitions, and the company’s technology is gaining traction with major OEMs, indicating future opportunities.
However, the lack of organic sales growth, aside from the COVID-19 period, poses a challenge to achieving the company’s growth targets. The guidance for FY26F aligns with expectations but includes a caveat of being weighted towards the second half, which, coupled with the volatility in the automotive sector, adds uncertainty. Despite the stock’s recent underperformance and attractive valuation, these factors contribute to the decision to maintain a Hold rating, as the current update may not be sufficient to trigger a positive shift in the share price.
According to TipRanks, Jeffriess is a 4-star analyst with an average return of 9.2% and a 64.84% success rate. Jeffriess covers the Consumer Cyclical sector, focusing on stocks such as Aumovio SE, AB Dynamics, and Dowlais Group PLC.