David Farrell, an analyst from Jefferies, reiterated the Buy rating on Volution (FAN – Research Report). The associated price target was raised to p700.00.
David Farrell’s rating is based on several key factors that highlight Volution’s potential for growth and profitability. The company has demonstrated accelerating revenue growth in the latter part of the first half of 2025, coupled with improved profit margins in its UK operations and Fantech division. This positive financial performance has led to an increase in earnings per share estimates for the fiscal years 2025 and 2026 by 5% and 3%, respectively.
Additionally, Volution has shown strong cash generation capabilities, which, despite accounting for deferred considerations, suggests a robust balance sheet. This financial strength provides the company with the capacity to pursue its consolidation strategy, particularly in the niche commercial sector, which is expected to play a more significant role moving forward. Consequently, the price target has been raised to 700p, reinforcing the Buy recommendation.
In another report released on March 13, Berenberg Bank also reiterated a Buy rating on the stock with a p700.00 price target.