Bodycote Group (LSE:BOY) is a 'Buy' with analysts at Deutsche Bank with an upgraded target price, as the engineering firm's Aerospace & Defence (A&D) business is now transforming the group’s growth and margin profile.
Analysts at DB, in a note, said the A&D unit has reached “critical mass” and is driving structural improvements that are not yet fully reflected in the valuation.
“We believe that the Bodycote of the future will be three things: faster growing, making structurally better margins, and demanding a revisit from the market on its ascribed quality,” DB analyst Thomas Elgar commented.
Deutsche Bank, which shifted its target to 860p from 700p, said it has confidence in Bodycote’s financial targets for full-year 2028.
In London, Bodycote shares were up 2.46% on Monday, changing hands at 667p.