Reaffirming Buy: Avon Protection’s Operational Momentum and FY26 Inflection Driving Growth Outlook

Analyst Andrew Douglas from Jefferies maintained a Buy rating on Avon Technologies and keeping the price target at p2,330.00.

Andrew Douglas has given his Buy rating due to a combination of factors that highlight both operational progress and future growth potential. He notes that the latest trading update is broadly in line with expectations, with Avon Protection delivering solid growth and management reaffirming full-year FY26 forecasts, which supports confidence in the company’s near-term outlook. While acknowledging that Team Wendy has experienced a softer start to the year because of US government shutdowns, he views this as an external, temporary disruption rather than a structural weakness in the business.
Douglas underscores that FY26 remains a crucial inflection point for Avon, reflecting substantial work already undertaken to reposition and strengthen the group. He points out that management is methodically rebuilding the business and, importantly, shifting more attention toward capturing growth opportunities rather than just stabilisation. The ramp-up of programmes such as ACH GEN II is seen as broadly progressing as expected, even if prolonged government shutdowns could delay some product testing and deliveries. Overall, he considers the operational momentum, intact guidance, and increasing strategic focus on growth as key reasons to maintain a positive stance on the shares, with limited need for consensus earnings changes reinforcing the Buy recommendation.

Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AVON in relation to earlier this year.