Senior plc’s Strategic Growth and Market Position Bolstered by Significant Contract Wins

Jefferies analyst Andrew Douglas maintained a Buy rating on Senior plc (SNR – Research Report) on May 20 and set a price target of p185.00.

Andrew Douglas has given his Buy rating due to a combination of factors that highlight Senior plc’s strong market position and growth potential. The recent announcement of two significant contract wins for the Flexonics division, valued at approximately EUR200 million over eight years, underscores the company’s robust order intake momentum. These contracts, which cater to both light-vehicle and heavy truck markets, align with Senior’s strategic growth objectives and demonstrate its ability to outperform its underlying markets.
Moreover, Senior’s unique product and technology offerings, coupled with its global manufacturing capabilities, position the company advantageously, especially in light of current tariff conditions. The contracts are expected to ramp up quickly and reach full capacity by fiscal year 2027, which is likely to bolster investor sentiment positively. While consensus forecasts may remain unchanged, the contract wins are a testament to Senior’s potential to achieve through-the-cycle growth targets, making it an attractive investment opportunity.

SNR’s price has also changed moderately for the past six months – from p144.800 to p163.800, which is a 13.12% increase.