Chenny Wang, an analyst from Morgan Stanley, maintained the Buy rating on Redox Limited. The associated price target remains the same with A$3.50.
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Chenny Wang’s rating is based on Redox Limited’s stable performance and promising outlook. The company reported volume growth that aligns with long-term averages, which is a positive indicator despite macroeconomic challenges. This growth is particularly noteworthy given that the first quarter is cycling against a period of unusually high volume growth.
Additionally, Redox Limited has maintained stable pricing and revenues are expected to align with the projected 9.2% sales increase for the fiscal year. The company’s gross margin is slightly above expectations, suggesting effective cost management and efficiency. These factors collectively contribute to the Buy rating, as they indicate a solid start to the fiscal year and potential for continued performance.