Victrex PLC (LSE:VCT) the high-tech plastics maker, has had a tough year and while the recent interims showed some signs of improvement it also sparked a raft of profit downgrades.
A third-quarter update is due next Thursday and investors will be hoping the good trends of strong aerospace and auto demand continue, while the destocking in medical and by resellers (VAR) slows down.
Peel Hunt cut its revenue forecast for this year to end December of £299 million following the interims with underlying profits expected to be around £69 million.
Gross margins have dropped due to the weakness in Medical and a higher cost of inventory, but the broker predicts this to reverse from next year onwards.
Buy with a reduced target price to 1,500p (from 1,800p) was Peel Hunt’s view two weeks ago.