Andrew Douglas, an analyst from Jefferies, maintained the Hold rating on Morgan Advanced Materials. The associated price target is p220.00.
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Andrew Douglas’s rating is based on a combination of factors, primarily revolving around Morgan Advanced Materials’ recent strategic updates and financial targets. The company has reset its medium-term goals, which, while slightly lower than previous targets, are deemed realistic and achievable. The management’s focus on enhancing operational efficiency, improving supply chain effectiveness, and optimizing the portfolio through partnerships and potential mergers or acquisitions is seen as a positive step.
Despite the targets being moderately below past expectations, Douglas views the reset as necessary and anticipated. The cessation of the share buyback program after the second tranche is not a significant concern, as the emphasis is on the successful execution of the new strategy. Ultimately, the Hold rating reflects a cautious optimism, with the understanding that the success of these initiatives will depend heavily on the management’s ability to deliver on their outlined plans.
In another report released on November 25, RBC Capital also downgraded the stock to a Hold with a p210.00 price target.