AB Dynamics, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Vanessa Jeffriess from Jefferies maintained a Hold rating on the stock and has a p1,620.00 price target.
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Vanessa Jeffriess has given her Hold rating due to a combination of factors influencing AB Dynamics’ financial outlook. The company’s management anticipates a slightly better-than-expected EBITA for FY25, with margins improving for the first time since FY19. This improvement is attributed to a favorable mix and internal efficiencies, despite a decline in revenue due to delays in projects from automotive OEMs, particularly in Europe.
However, the projected sales growth for FY25, including mergers and acquisitions, is significantly below the company’s long-term target. Additionally, the forecast for FY26 appears optimistic, with potential risks due to ongoing customer uncertainty and the non-recurring nature of the current mix benefits. These factors contribute to a cautious outlook, leading to the Hold rating, as the expected share price reaction remains muted despite potential long-term valuation appeal.
According to TipRanks, Jeffriess is ranked #2245 out of 10012 analysts.