Tuesday - Stifel has increased its price target for AB Dynamics Plc (ABDP:LN) shares to £22.00 from the former £20.50, while reiterating a Buy rating on the stock. The revision follows the company's first-half results, which surpassed the group's own expectations.
AB Dynamics reported an 8% increase in sales, improved margins, and cash conversion rates exceeding 100%. This performance is particularly notable given that significant revenues from the Simulation segment are expected to be recorded in the second half of the fiscal year.
The firm's analysts are optimistic about the company's future, projecting that full-year profits will exceed current market predictions. As a result, they have adjusted the full-year earnings per share (EPS) forecast up by 3p to approximately 64p. The positive outlook is supported by robust order intake and the advancement of AB Solutions towards commercialization.
AB Dynamics' upbeat commentary on its prospects extends beyond the current fiscal year. The company is well-positioned to benefit from structural and regulatory growth drivers, and it possesses a strong balance sheet. The analysts underscore the company's increasing profitability and its consistent track record of successful execution.
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