Jefferies analyst David Farrell has maintained their bullish stance on COA stock, giving a Buy rating on May 8.
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David Farrell has given his Buy rating due to a combination of factors, including Coats Group plc’s resilient trading performance and robust headline figures in the latest AGM update. Organic revenue slipped only modestly, which he believes is better than what the market had anticipated, with the performance driven primarily by market share gains in the Apparel segment rather than price increases.
Coats’ full-year outlook remains intact, and Farrell highlights that there is no clear sign the Middle East conflict is undermining demand, reinforcing his view that the company can capitalize on market dislocation. While he acknowledges weakness at Ortholite, linked to challenging comparisons, softer end markets, and temporary operational issues in Indonesia, he expects new product launches and a second-half recovery to support the investment case, even if this issue moderates some of the near-term enthusiasm.
In another report released on May 8, RBC Capital also maintained a Buy rating on the stock with a p125.00 price target.