Senior plc, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Andrew Douglas from Jefferies maintained a Buy rating on the stock and has a p230.00 price target.
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Andrew Douglas has given his Buy rating due to a combination of factors that materially improve Senior plc’s equity story and financial profile. The completion of the Aerostructures divestment marks a strategic turning point, allowing the company to streamline its portfolio and focus on higher‑quality, higher‑growth activities. He sees meaningful scope for earnings to recover and expand over the next several years, supported by a solid revenue backdrop and management’s plans to lift operating profitability. In his view, this combination underpins an attractive medium‑term growth and margin trajectory for the business.
In addition, Douglas highlights the capital allocation benefits stemming from the transaction proceeds. A portion of the cash will be used to strengthen the balance sheet through net debt reduction, lowering financial risk and enhancing resilience. At the same time, the planned £40m share repurchase, set to commence after the FY25 preliminary results in early March, is expected to be accretive to earnings per share and supportive for the share price. Taken together, these factors justify his reiterated Buy recommendation on Senior plc.
According to TipRanks, Douglas is a 4-star analyst with an average return of 4.5% and a 57.28% success rate. Douglas covers the Industrials sector, focusing on stocks such as Senior plc, Smiths Group plc, and Avon Technologies.