Vesuvius upgraded by Jefferies

Jefferies International has double-upgraded its investment rating on Vesuvius (LON:VSVS) by moving straight to ‘buy’ (from ‘underperform’), stating that the metal flow engineer is doing better than it feared.

The broker said: “Vesuvius has not become a high quality business like Halma, but we recognise rising cost saving benefits, a healthy FX tailwind and appealing dividend and FCF yields.

“We update our FY16-FY18 model/forecasts, which now generally sit ahead of consensus.”

Analysts have hiked their price target to 405 pence a share from 255 pence.

Jefferies added: “Vesuvius is a good business in a tough sector and we are not arguing it is morphing into a Halma-type, quality business, but it is getting its house into better order.”

At 2:32pm: (LON:VSVS) Vesuvius share price was +17.3p at 376p

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