Avon Rubber (AVON)

Sector:

Defense and Aeronautics

Index:

FTSE 250

3,270.00p
   
  • Change Today:
    -30.00p
  • 52 Week High: 3,330.00
  • 52 Week Low: 1,252.00
  • Currency: UK Pounds
  • Shares Issued: 31.02m
  • Volume: 127,600
  • Market Cap: £1,014.45m
  • RiskGrade: 257

Berenberg raises target price on Avon Rubber following Ceradyne acquisition

By Iain Gilbert

Date: Monday 19 Aug 2019

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg raised their target price on respiratory protection equipment maker Avon Rubber from 1,650p to 1,800p on Monday, stating that its acquisition of 3M\'s ballistic-protection business and rights to the Ceradyne brand had been the deal it was \"waiting for\".
Berenberg said the $91.0m deal, announced on 7 August, was a \"quality acquisition\" that surpassed its expectations both strategically and financially, hence the 20-34% upgrades to its earnings estimates for the company.

The German bank also said the acquisition multiple was \"attractive\", particularly when considering the expected cost synergies from systems integration and back-office functions.

\"Delivering these synergies is forecast to cost $10m, representing a two-year payback,\" said Berenberg.

Although it noted that a deal of this size \"clearly\" carries integration risks, Berenberg said order visibility was good given the expected ramp-up in two major contracts.

While Berenberg expected Avon\'s shares to \"pause in the near term\", its analysts said that investors should continue to look further ahead.

\"This is a high-quality, high-margin, cash-generative business that we believe can grow to a multiple of its current size through organic growth and M&A,\" said Berenberg, which also reiterated its \'buy\' rating on the firm.

\"We believe Avon\'s products will continue to drive organic opportunities with new military and law enforcement customers. New product launches should further support growth and margins, potentially also opening new avenues of growth such as in civilian applications.\"

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Avon Rubber Market Data

Currency UK Pounds
Share Price 3,270.00p
Change Today -30.00p
% Change -0.91 %
52 Week High 3,330.00
52 Week Low 1,252.00
Volume 127,600
Shares Issued 31.02m
Market Cap £1,014.45m
RiskGrade 257

Avon Rubber Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
99.07% below the market average99.07% below the market average99.07% below the market average99.07% below the market average99.07% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Price Trend
96.88% above the market average96.88% above the market average96.88% above the market average96.88% above the market average96.88% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Income
95.14% below the market average95.14% below the market average95.14% below the market average95.14% below the market average95.14% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Growth
34.01% below the market average34.01% below the market average34.01% below the market average34.01% below the market average34.01% below the market average
23.08% below the sector average23.08% below the sector average23.08% below the sector average23.08% below the sector average23.08% below the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 4
Sell 0
Strong Sell 0
Total 6
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Avon Rubber Dividends

  Latest Previous
  Final Interim
Ex-Div 13-Feb-20 08-Aug-19
Paid 13-Mar-20 06-Sep-19
Amount 13.89p 6.94p

Trades for 29-May-2020

Time Volume / Share Price
16:37 2,591 @ 3,270.00p
16:36 164 @ 3,270.00p
16:35 7,351 @ 3,270.00p
16:29 3 @ 3,250.00p
16:29 25 @ 3,250.00p

Avon Rubber Key Personnel

Chair David Evans
CEO Paul McDonald
CFO Nick Keveth

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