Jefferies analyst Andrew Douglas has maintained their bullish stance on IMI stock, giving a Buy rating on November 10.
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Andrew Douglas has given his Buy rating due to a combination of factors surrounding the strategic sale of IMI’s Truflo Marine business. The transaction, valued at £225 million, is seen as a favorable move by management, as it allows the company to capitalize on a high-margin yet niche business that has shown significant improvement in earnings before interest, taxes, and amortization (EBITA) over recent years.
Furthermore, the sale is expected to yield a healthy multiple of around 15 times EBITA, which underscores the soundness of the decision. Although the completion of the sale is contingent upon regulatory approvals, including those from the UK Ministry of Defence and the Australian government, the anticipated proceeds from the sale could potentially lead to a share buyback, enhancing shareholder value. These strategic considerations underpin Douglas’s confidence in maintaining a Buy rating for IMI plc.
In another report released on November 10, Barclays also maintained a Buy rating on the stock with a £28.10 price target.
Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is neutral on the stock.