Deutsche Bank hikes target price on Avon Technologies
Avon Technologies
2,455.00p
16:39 15/10/26
Deutsche Bank lifted its price target for Avon Technologies from 2,000p to 2,480p, saying last week's strategy event underscored the scale of the group's turnaround and justified higher earnings estimates.
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The broker said Avon had "comfortably" exceeded its final FY27 operating margin target of 14% to 16% a year early, having already met all other strategic goals last year.
Deutsche Bank said the transformation under chief executive Jos Sclater has been "difficult to overstate", with underlying earnings and return on invested capital nearly tripling and leverage falling sharply.
DB highlighted a materially strengthened business, deeper customer relationships and a more competitive product portfolio. It pointed to Avon's first 100% order win on DoW filters earlier this year as evidence of improved execution - and a potential challenge for its key competitor.
The new 2,480p target reflects DB's 24% uplift, driven by higher earnings forecasts, a 12‑month roll‑forward to FY28 earnings per share and a small increase in the sector multiple. While the operational progress was clear, DB said the shares already price in much of the improvement, leaving it comfortable maintaining a 'hold' stance.
Reporting by Iain Gilbert at Sharecast.com