Jefferies has downgraded its recommendation on Essentra (LON:ESNT) to ‘hold’ from ‘buy’ following a trading update / profit warning from the plastic components manufacturer earlier this week saying the its self inflicted wounds need time to repair, adding that CEO Paul Forman has a sizeable job on his hands.
Equity analyst Andy Douglas said: “The group needs to undergo significant change and while there is recovery potential, remedial work is needed, the recovery will take time to come through and will come from a lower-than-expected starting point.”
Jefferies has nudged its price target up to 450 pence per share (from 445 pence).
Separately, Citigroup cut its rating on the stock to ‘neutral’ (from ‘buy’) and lowered its target to 430 pence (from 500 pence), on Tuesday.
“We anticipate the shares will be range bound over much of the next 12 months,” Citi commented.
“Value attributes are being balanced by a lack of positive earnings catalysts.”
At 3:58pm: (LON:ESNT) Essentra share price was -8.45p at 409.55p
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