Financial ExpectationsMorgan has again lowered its FY25F expectations, with a push-out in semiconductor demand and uncertainty in European Industrial markets being the key reasons.
Investor SentimentThis is an unexpected downgrade given some signs of stabilisation with the 1H25 results, and despite the low valuation multiple, will likely cause another hit to the share price and investor sentiment.
Profit MarginsFY25F consensus EBITA will drop c10% with the main driver being the downward revision to EBITA margins, which are now seen at c10% due to the under-recovery of costs, weaker mix and FX.