Morgan Advanced Materials said it has been hit by a cyber attack just a day after a capital markets day though analysts remained in a bullish mindset, even so.
The ceramics group said it had detected unauthorised activity on its network and had implemented response plans, which involved actions both to contain the incident and remediate and restore systems.
There was no indication of the size and potential impact on the business, but it is serious enough for the company to issue a statement, noted broker Peel Hunt.
Even so, the broker remained upbeat and reiterated that the capital markets day outlined a compelling investment proposition. something that the cyber incident does not change.
"There is precedent within the sector, which was Weir back in October 2021 - the impact was a combination of deferral of revenue and subsequent under-recovery of overhead, and a cost to resolve the issue, but the key point is that Weir traded successfully through the incident and the legacy impact was very limited "
Liberum, meanwhile, restarted coverage with the opinion that the share price is yet to recognise the improvements in margins, return on capital and balance over the past six years nor its “vastly improved resilience”.
Also a buyer, Liberum sees upside to 400p per share as margins pick up with an industrial cycle upturn.
“We also highlight a wider-than-warranted trading discount to IMI”.
Shares were down 2% at 310p.