Analyst Vanessa Jeffriess from Jefferies maintained a Hold rating on TT Electronics (TTG – Research Report) and keeping the price target at p88.00.
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Vanessa Jeffriess’s rating is based on several factors, including the recent downgrade in TT Electronics’s FY25F EBITA guidance, which has been reduced from £40-46 million to £32-40 million. This significant reduction highlights concerns about the company’s ability to address ongoing issues in North America, especially given the broader economic challenges.
Despite some positive valuation support, as evidenced by the stock’s recent outperformance relative to the sector, the anticipated negative reaction in the share price and the disappointing sales figures for FY24 contribute to the Hold rating. Additionally, the transition in leadership, with Peter France stepping down as CEO and Erik Lakin taking over as acting CEO, adds another layer of uncertainty to the company’s future performance.