Analyst David Farrell of Jefferies maintained a Buy rating on Volution (FAN – Research Report), with a price target of p690.00.
David Farrell has given his Buy rating due to a combination of factors that highlight Volution’s strong financial performance and strategic positioning. The company has consistently exceeded expectations, with the latest results showing a notable increase in organic revenue growth, which has accelerated to 4% in the first half of 2025. This growth is significant as it exceeds the target range, indicating strong momentum as the company moves into the second half of the fiscal year.
Additionally, Volution has demonstrated robust cash conversion and a reduction in leverage to 1.5x following the acquisition of Fantech. This financial stability supports the company’s strategy of mergers and acquisitions, which is expected to drive continued double-digit revenue growth. Furthermore, the company’s valuation, at 11.5x FY26F EV/EBITA, is at the lower end of its historical range, suggesting potential for share price appreciation. These factors collectively justify the Buy rating, as they indicate a promising outlook for Volution’s future performance.