Jefferies analyst Andrew Douglas maintained a Buy rating on Essentra today and set a price target of p150.00.
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Andrew Douglas has given his Buy rating due to a combination of factors surrounding Essentra’s strategic acquisition of Device Technologies LLC. The acquisition, valued at an initial US$6.7 million, aligns with Essentra’s growth strategy, emphasizing mergers and acquisitions as a key component. Although the deal is relatively small, it is seen as a sensible and well-priced move that could pave the way for future growth opportunities.
Douglas notes that the acquisition is strategically sound, with management expressing satisfaction over the completion of the transaction. The business was acquired at an attractive multiple, and there is potential for significant improvement under Essentra’s ownership. While some initial investment will be required, the expectation is that the growth potential of the acquired business will be enhanced. This acquisition is viewed positively, likely boosting investor sentiment and supporting a gentle increase in Essentra’s share price.
According to TipRanks, Douglas is a 4-star analyst with an average return of 4.9% and a 57.80% success rate. Douglas covers the Industrials sector, focusing on stocks such as Senior plc, Smiths Group plc, and IMI plc.