Analyst Andrew Douglas from Jefferies maintained a Buy rating on Vesuvius and decreased the price target to p520.00 from p530.00.
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Andrew Douglas has given his Buy rating due to a combination of factors that suggest significant recovery potential for Vesuvius. Despite the company’s recent trading update indicating a challenging market environment and anticipated downgrades to earnings forecasts, Douglas sees these challenges as already factored into the current share price.
The company’s management has set ambitious cost-saving targets for the future, and there is an expectation that pricing improvements will materialize in the latter half of the year. This, coupled with the belief that the current valuation reflects the anticipated downgrades, underpins the Buy rating. Douglas emphasizes the importance of management’s execution on pricing strategies, which could lead to a positive turnaround for the stock.