Victrex PLC (LSE:VCT) drew higher earnings forecasts from Deutsche Bank following a profit guidance upgrade, but the bank’s increased price target still trails the shares.
The shares traded at 1,001.50p, down 1% in morning trading, while Deutsche Bank kept its 'hold' rating and raised its target to 830p from 600p.
Even after the increase, the revised target sits 17% below the share price, leaving a gap between the bank’s valuation and the market.
Behind the revisions, management now expects underlying pre-tax profit of £45 million to £47 million for financial year 2026, against £42 million to £44 million previously.
Reflecting the higher guidance, analyst Kevin Fogarty raised his adjusted earnings per share forecast for financial year 2026 by 5.8%.
Supporting the improved outlook, strong trading momentum continued into the fourth quarter, with aerospace, value-added resellers and electronics driving growth compared with a year earlier.
Regionally, Victrex reported good growth across all markets, with particularly strong growth in Asia Pacific adding to the broader picture of stronger trading.
Alongside this momentum, the note said benefits from the previously outlined £10 million cost-saving programme started coming through in the fourth quarter.
The earnings revisions also extend into financial year 2027, with Fogarty raising his adjusted earnings per share forecast by 5.2% for the following year.
