Analyst Andrew Douglas of Jefferies maintained a Buy rating on Essentra (ESNT – Research Report), retaining the price target of p177.00.
Andrew Douglas has given his Buy rating due to a combination of factors including Essentra’s solid financial performance and strategic positioning. The company’s FY24 preliminary results met expectations, demonstrating robust management amid challenging macroeconomic conditions. Essentra’s management has effectively controlled costs and maintained a strong net promoter score, indicating customer satisfaction and operational efficiency.
Additionally, the company is well-positioned to benefit from potential improvements in the European and US purchasing managers’ index and industrial production. Essentra’s focus on mergers and acquisitions presents further growth opportunities, and its strategic emphasis on the EMEA region aligns with potential market recoveries. These factors collectively support the Buy rating, with expectations of continued share buybacks into FY26F.
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