Analyst Vanessa Jeffriess from Jefferies maintained a Buy rating on Dowlais Group PLC (DWL – Research Report) and keeping the price target at p81.00.
Vanessa Jeffriess’s rating is based on Dowlais Group PLC’s strong performance, which exceeded expectations in terms of profit and loss as well as cash and debt management. The company’s results were resilient, aligning with previous guidance and slightly surpassing forecasts, particularly due to accelerated margins in the latter months of the year. Additionally, the Powder Met division showed a positive year-over-year increase in its order book, indicating growth potential.
Furthermore, the guidance for the fiscal year 2025 aligns with forecasts, suggesting stability and potential for future growth through commercial recoveries and restructuring efforts. Despite concerns about tariffs affecting the auto supplier market, the direct impact on Dowlais is expected to be minimal. The company’s ability to deleverage this year also contributes to the positive outlook, supporting the Buy rating given by Vanessa Jeffriess.