Analyst Jacob Armstrong of Stifel Nicolaus maintained a Buy rating on Macfarlane, with a price target of p130.00.
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Jacob Armstrong has given his Buy rating due to a combination of factors that suggest potential for future growth despite current challenges. Firstly, while Macfarlane has faced setbacks due to a tragic incident at the Pitreavie site, the company’s management is actively working on stabilizing operations and improving performance in its Distribution segment. This proactive approach indicates a commitment to overcoming current difficulties and enhancing future profitability.
Additionally, the company’s net debt remains comfortably within its £40 million facility, suggesting a stable financial position that can support recovery efforts. Furthermore, the Manufacturing Operations, excluding Pitreavie, continue to perform robustly, providing a solid foundation for the company’s overall performance. With an upside potential of 49.1% to the price target, Armstrong sees significant value in Macfarlane’s stock, warranting a Buy recommendation.
According to TipRanks, Armstrong is ranked #3955 out of 10041 analysts.