Analyst Andrew Douglas of Jefferies maintained a Buy rating on The Vitec (VID – Research Report), retaining the price target of p425.00.
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Andrew Douglas has given his Buy rating due to a combination of factors that suggest a positive outlook for The Vitec. The company’s management has reaffirmed its financial guidance for the fiscal year 2024, which indicates confidence in their operational strategy and financial health. The recent waiver of the February 2025 covenant test is a positive step, alleviating immediate financial pressure and providing a supportive backdrop for the company’s equity story.
Moreover, restructuring efforts are showing progress, with management announcing additional benefits, which now total £15 million. This improvement in restructuring is expected to enhance operational efficiency and contribute positively to the company’s future performance. Furthermore, there is an anticipated gradual improvement in the end markets, which should lead to increased order intake over time, supporting revenue growth. Despite the need for another waiver or amendment for the March 2025 covenant, the supportive stance of the company’s banking syndicate adds a layer of confidence to their refinancing efforts.