Analyst David Farrell from Jefferies maintained a Buy rating on Volution and keeping the price target at p780.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
David Farrell has given his Buy rating due to a combination of factors, including Volution’s financial performance and market positioning. The company’s FY25 results exceeded expectations, primarily due to a robust second half with organic revenue growth surpassing their target range. This strong performance indicates positive momentum as the company moves into FY26, with management noting capacity expansions and improvements in previously sluggish markets.
Additionally, Volution’s financial flexibility, demonstrated by a ND:EBITDA ratio of 1.2x, positions it well for potential market consolidation. The impressive growth in OCC revenue, particularly in the UK and Australasia, and the high EBITA margin in the UK, driven by premium product offerings, further support the Buy rating. These factors, combined with favorable market conditions and regulatory influences, underscore the company’s potential for continued growth.
Farrell covers the Industrials sector, focusing on stocks such as Volution, QinetiQ, and Halma plc. According to TipRanks, Farrell has an average return of 11.8% and a 67.97% success rate on recommended stocks.