In a report released yesterday, David Farrell from Jefferies maintained a Buy rating on Volution (FAN – Research Report), with a price target of p700.00.
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David Farrell has given his Buy rating due to a combination of factors influencing Volution’s market position and growth prospects. One of the key reasons is the anticipated improvement in the European residential market, which is expected to enhance Volution’s revenue streams from this region. Despite the current dominance of the UK and Australasian divisions, the European segment, which contributes significantly to the company’s revenue, is poised for growth.
Furthermore, the European market presents opportunities for mergers and acquisitions, which could bolster Volution’s market share. The positive outlook is supported by industry trends, as evidenced by the rising demand for ventilation products in Europe, highlighted by competitors like Zehnder. Additionally, Volution’s organic revenue growth in Central Europe suggests a promising trajectory, with expectations of continued growth in the coming fiscal years.