Analyst David Farrell from Jefferies maintained a Buy rating on Volution and keeping the price target at p720.00.
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David Farrell has given his Buy rating due to a combination of factors including the expectation of a consensus EPS upgrade of approximately 3% driven by stronger organic revenue growth. This growth is particularly significant as it is not solely based on margin improvements but rather on the solid performance of the company’s core operations.
Additionally, Volution’s momentum heading into the next fiscal year is strong, with a positive outlook for the underlying markets. The company’s ability to exceed its organic revenue growth targets and the strong performance of its Fantech division further bolster confidence in its future prospects. Moreover, with effective cash conversion and a forecasted reduction in net debt, Volution is well-positioned to continue its M&A strategy, supporting the Buy recommendation.