Bodycote Group (LSE:BOY) has been granted an upgrade by RBC analysts after a fall in its share price to what the bank labelled an “attractive entry point”.
Having fallen by 21% over the past three months, RBC said the heat treatment and specialist thermal processing services firm still held value.
This was despite reduced forecasts on headwinds in the auto, industrial, aerospace and defence sectors.
“With margins still below pre-Covid levels and a new chief executive set to host a December capital markets days that could point to incremental self-help, we see this as an attractive entry point,” analysts noted.
Bodycote was upgraded to an ‘outperform’ rating as a result, though RBC scaled back its share price target from 720p to 700p.
Shares climbed by 1.2% to 570p on Tuesday.