tiprankstipranks
Advertisement
Advertisement

Buy Rating Reaffirmed on Enhanced Margin Ambitions and Structurally Higher Growth Outlook Driven by OrthoLite and Adjacent Markets

Buy Rating Reaffirmed on Enhanced Margin Ambitions and Structurally Higher Growth Outlook Driven by OrthoLite and Adjacent Markets

David Farrell, an analyst from Jefferies, maintained the Buy rating on Coats Group plc. The associated price target is p111.00.

Meet Samuel – Your Personal Investing Prophet

David Farrell has given his Buy rating due to a combination of factors including in‑line FY25 performance and improved profitability guidance. The company delivered revenue and EBITA broadly matching expectations, with a modest EPS beat, while management raised its medium‑term EBITA margin ambition to a range that is notably above both previous targets and Farrell’s prior assumptions.

Farrell also highlights the resilience of the FY26 outlook, where he expects a mix shift toward higher growth from the OrthoLite acquisition even if core organic growth moderates slightly. In addition, strong early traction in Adjacent Markets, which are already adding meaningfully to organic growth from a small base, supports confidence in a structurally higher growth profile and underpins his positive stance on the shares.

Farrell covers the Industrials sector, focusing on stocks such as Chemring, FLSmidth & Co. A/S, and Metso Outotec. According to TipRanks, Farrell has an average return of 11.5% and a 69.64% success rate on recommended stocks.

Disclaimer & DisclosureReport an Issue

1