Jefferies analyst David Farrell has maintained their neutral stance on MGAM stock, giving a Hold rating on April 25.
David Farrell’s rating is based on a combination of factors that suggest caution regarding Morgan Advanced Materials’ future performance. Ahead of the company’s first-quarter 2025 trading update, Farrell has adjusted forecasts to incorporate guidance from the fiscal year 2024 results, alongside additional caution due to tariff volatility. This has led to a projection of a 7% decline in organic revenue for fiscal year 2025, with EBITA margins expected to be around 11.5%.
Given the current state of the company’s balance sheet, Farrell anticipates that the ongoing share buy-back program will be halted after the current tranche, leaving it only half complete. These considerations contribute to the Hold rating, as they indicate potential challenges that may impact the company’s financial performance in the near term.
According to TipRanks, Farrell is ranked #1970 out of 9371 analysts.
In another report released on April 25, Barclays also downgraded the stock to a Hold with a £2.20 price target.