Vesuvius: Resilient Execution and Supportive Policy Backdrop Underscore Undervalued Recovery Upside

Andrew Douglas, an analyst from Jefferies, maintained the Buy rating on Vesuvius. The associated price target is p565.00.

Andrew Douglas has given his Buy rating due to a combination of factors, including Vesuvius delivering preliminary FY25 results that modestly exceeded profit and earnings expectations despite a challenging macro and industry backdrop. He highlights management’s effective execution, with further market share gains, successful pricing actions, and benefits from restructuring and recent acquisitions supporting resilience.

Douglas also points to an increasingly supportive outlook, underpinned by protectionist measures in the EU, policy moves in China, and the prospect of better European industrial indicators, all of which enhance recovery potential. He believes current market forecasts for FY26 earnings are appropriately set, views the shares as undervalued relative to this recovery profile, and therefore sees attractive upside from current levels.