Analyst Vanessa Jeffriess of Jefferies reiterated a Buy rating on Elementis, retaining the price target of p200.00.
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Vanessa Jeffriess has given her Buy rating due to a combination of factors that highlight Elementis’s potential for growth and resilience in challenging markets. Her confidence stems from recent meetings with the company’s management, which reinforced her belief in their strategic direction and ability to achieve growth targets despite current market difficulties. The valuation of Elementis does not yet reflect these positive prospects, suggesting an opportunity for investors.
Furthermore, Jeffriess notes the transformation in Elementis’s returns and cash flow profile following recent disposals, as well as the positive impact of new leadership. The company’s unique assets, such as the hectorite mine, and a strong balance sheet position it well for potential buybacks and strategic acquisitions. While cost savings remain beneficial, the focus has shifted towards growth, with particular attention on core areas like hectorite and rheology, which are expected to drive future performance.
In another report released on October 8, UBS also maintained a Buy rating on the stock with a p190.00 price target.
Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ELM in relation to earlier this year.