In a report released today, Hendrik Stahlschmidt from Stifel Nicolaus maintained a Buy rating on Theon International Plc (THEON – Research Report), with a price target of €19.50.
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Hendrik Stahlschmidt has given his Buy rating due to a combination of factors that highlight Theon International Plc’s strong financial performance and potential for future growth. The company reported a significant increase in revenue for FY2024, with a 61% rise to €352.4 million, and a gross profit margin of 31%. This robust performance is further supported by an impressive order intake of €466 million and an order book of €654 million, which provides a solid foundation for future revenue streams.
Moreover, despite a temporary increase in net working capital, primarily due to receivables, management has addressed this issue and expects normalization by the end of the year. The outlook for FY2025 remains positive, with 90% of sales guidance already covered by the current order book, suggesting potential for upward revisions if order momentum continues. Although the recent share price rally has surpassed the current price target, the company’s strong fundamentals and potential for increased guidance underpin the Buy rating.