Berenberg stays at 'buy' on Volution

5th Oct 2023 15:18

(Sharecast News) - Ventilation equipment manufacturer Volution released its full-year results on Thursday, leading analysts at Berenberg to take a fresh look at the stock.

Berenberg said Volution had ultimately delivered results that came in approximately 2% ahead of prevailing consensus down the income statement and guided for full-year results that will be in line with consensus.

The German bank stated highlights from Volution's numbers included 6.6% revenue growth in the year, underlying earnings margins at 21.3%, and net debt below expectations at 0.8x EBITDA.

"We view this as another really good year of delivery at the company, which continues to demonstrate some of the trends seen in our more European-industrials-focused products businesses, such as diversification, strong margins, and consistent delivery," said Berenberg, which stood by its 'buy' rating and 500.0p target price on the stock.

Berenberg also reminded clients that since its initial public offering in 2014, Volution has delivered an adjusted earnings per share compound annual growth rate of 12.7%, having grown organically and deployed capital well.

Reporting by Iain Gilbert at Sharecast.com