Stifel Nicolaus analyst Sam Dindol maintained a Buy rating on Vertu Motors (VTU – Research Report) today and set a price target of p75.00.
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Sam Dindol has given his Buy rating due to a combination of factors that highlight Vertu Motors’ potential for growth. Despite challenges in the UK car market, such as the dislocation caused by the ZEV mandate, Vertu Motors has shown resilience by outperforming in BEV sales and like-for-like retail volumes. The recent changes to the ZEV mandate, which include added flexibilities and reduced fines, are seen as positive developments that could benefit Vertu Motors in the long term.
Additionally, the UK new car market has shown signs of recovery, with March 2025 registrations reaching their highest level since 2019, indicating a potential rebound in consumer demand. Vertu Motors is also managing cost pressures effectively and continues to offer attractive cash returns through its ongoing buyback program. The company’s valuation, with a forward P/E of around 9x and a tangible NAV per share of 73.7p, is considered undemanding, supporting the Buy recommendation.
Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is neutral on the stock.