In a report released today, Andrew Douglas from Jefferies maintained a Buy rating on Vesuvius (VSVS – Research Report), with a price target of p530.00.
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Andrew Douglas has given his Buy rating due to a combination of factors that suggest Vesuvius’s stock holds potential for recovery and growth. Despite a mixed trading update, the results were largely anticipated given the current market challenges. The company’s management remains cautious about the market outlook, but there are positive signs of market share gains and recovery potential, which are encouraging.
Furthermore, the stock is considered undervalued, trading at a relatively low FY25F EV/EBITA multiple. This valuation, coupled with the company’s performance in outperforming its peers in terms of stable sales and modest volume growth, supports the Buy rating. The completion of the second buyback also adds to the positive outlook, reinforcing the belief in the stock’s attractive recovery potential in the coming years.
According to TipRanks, Douglas is a 3-star analyst with an average return of 2.4% and a 53.51% success rate.