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(Sharecast News) - Analysts at Jefferies raised their target price on ventilation products supplier Volution Group from 470.0p to 490.0p on Friday, stating activity was continuing to flow.
Jefferies said the acceleration in organic revenue over December and January was a "particularly pleasing element" of Volution's interim results, as was the strength in UK repair, maintenance improvement market - an area where there was "significant" investor apprehension.
As a result, the analysts raised FY23/FY24/FY25 adjusted underlying earnings estimates by 7%/4%/4%, predominantly on higher revenues and kept its 'buy' recommendation.
Jefferies also said it was now looking for a return of mergers and acquisitions to provide a further catalyst for Volution's share price.
"On our new estimates, Volution trades on calendarised FY24F EV/ EBITA and PER multiples of 10.7x and 14.4x. These are undemanding figures in our view, equating to the average multiples seen since IPO. It is worth noting, that since mid-December, Volution has de-rated against a basket of European peers, with the FY2 EV/EBIT discount moving from 19% to 29%," said Jefferies.
Reporting by Iain Gilbert at Sharecast.com
