Jefferies analyst David Farrell maintained a Buy rating on Coats Group plc today and set a price target of p130.00.
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David Farrell has given his Buy rating due to a combination of factors, including the resilience Coats Group plc has shown in the face of macroeconomic and tariff challenges. Despite a slight decline in organic revenue growth over the recent four-month period, the performance was better than earlier in the year, indicating a positive trend. The company’s ability to outperform in the Apparel sector and gain market share with major brands, particularly in the Chinese domestic market, highlights its competitive edge.
Furthermore, the return to growth in the Performance Materials division, driven by targeted adjacencies, is a positive sign for future prospects. The integration of Ortholite into the portfolio, which is performing as expected, is anticipated to contribute positively to both growth and margins. Overall, the trading update did not contain any major surprises, suggesting stability, and Farrell does not foresee a significant impact on the share price, reinforcing his confidence in the company’s potential.
Based on the recent corporate insider activity of 20 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 COA in relation to earlier this year.