Jefferies analyst Andrew Douglas has reiterated their bullish stance on VSVS stock, giving a Buy rating on August 6.
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Andrew Douglas has given his Buy rating due to a combination of factors related to Vesuvius’s strategic acquisition of Morgan Advanced Materials’ MMS business. This acquisition is expected to enhance Vesuvius’s Foundry division by expanding its presence in non-ferrous markets and increasing its footprint in India, which aligns with the company’s strategic goals.
Furthermore, the acquisition is structured innovatively, with a mix of debt and new shares, minimizing the impact on Vesuvius’s leverage. The deal is anticipated to be accretive to earnings per share by fiscal year 2026, and the expected synergy benefits are likely to improve the company’s margin profile. With a projected 35% upside to the price target of 490p, Douglas maintains a positive outlook on Vesuvius, expecting the stock to rise following this announcement.
In another report released on August 6, RBC Capital also maintained a Buy rating on the stock with a p590.00 price target.