Avon Protection (AVON)

Sector:

Defense and Aeronautics

Index:

FTSE 250

2,652.00p
   
  • Change Today:
    -4.00p
  • 52 Week High: 4,625.00
  • 52 Week Low: 2,424.00
  • Currency: UK Pounds
  • Shares Issued: 31.02m
  • Volume: 7,068
  • Market Cap: £822.74m
  • RiskGrade: 186

Berenberg slashes target price on Avon Rubber, stock remains on 'least preferred' list for 2021

By Iain Gilbert

Date: Thursday 03 Jun 2021

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg slashed their target price on personal protection systems manufactureer Avon Rubber from 3,335.0p to 2,955.0p on Thursday, stating the group was now entering "a testing period".
While Berenberg said it maintains its view that Avon Rubber is "a high-quality business with attractive medium-term opportunities", it also added that the company's interim results provided it with "few reasons" to change its "more cautious stance", with Avon remaining one of its "least preferred names for 2021".

The German bank pointed out that a 65% second-half underlying earnings weighting was required to deliver full-year guidance, meaning that any further issues with the group's body armour contract could "meaningfully affect" 2022 estimates.

"The next major test for Avon will be in the coming months as it embarks on the next testing phase of its body armour contract. We are encouraged by the comments that a thorough review has been conducted following the testing failures announced last December with revised product designs to address the issue now finalised; however, we seek certainty that the upcoming tests are successful," said Berenberg.

"Any further challenges could result in a 10-15% cut to our 2022 estimates, which would likely also culminate in a derating of the stock."

Berenberg also highlighted that a change of chief financial officer and deputy CFO had already disrupted the usual continuity.

"Shares have fallen 33% from highs to better reflect the near-term risks, but we require greater confidence in earnings before we can turn more positive," said the analysts, who reiterated their 'hold' rating on the stock.

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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 Protection Market Data

Currency UK Pounds
Share Price 2,652.00p
Change Today -4.00p
% Change -0.15 %
52 Week High 4,625.00
52 Week Low 2,424.00
Volume 7,068
Shares Issued 31.02m
Market Cap £822.74m
RiskGrade 186

Avon Protection Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value Not Available
Price Trend
33.09% below the market average33.09% below the market average33.09% below the market average33.09% below the market average33.09% below the market average
38.46% below the sector average38.46% below the sector average38.46% below the sector average38.46% below the sector average38.46% below the sector average
Income Not Available
Growth
31.18% below the market average31.18% below the market average31.18% below the market average31.18% below the market average31.18% below the market average
28.57% below the sector average28.57% below the sector average28.57% below the sector average28.57% below the sector average28.57% below the sector average

What The Brokers Say

Strong Buy 3
Buy 0
Neutral 1
Sell 0
Strong Sell 1
Total 5
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Avon Protection Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Aug-21 11-Feb-21
Paid 03-Sep-21 12-Mar-21
Amount 14.30¢ 18.06p

Trades for 27-Jul-2021

Time Volume / Share Price
15:55 1 @ 2,648.40p
15:54 47 @ 2,652.00p
15:54 25 @ 2,652.00p
15:54 37 @ 2,650.00p
15:54 2 @ 2,650.00p

Avon Protection Key Personnel

CEO Paul McDonald
CFO Nick Keveth
Chair Bruce Thompson

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