JPMorgan Cazenove gave a boost to Morgan Advanced Materials plc (LON:MGAM) on Tuesday after upgrading its rating for the FTSE 250-listed firm to ‘overweight’ from ‘neutral’.
The US bank also upped its target price for the advanced ceramics and carbon products manufacturer – formerly known as Morgan Crucible - to 390p from 345p.
READ: Morgan Advanced Materials to exit the Composite and Defence Systems business
In late morning trade on Tuesday, the shares were trading at 356.2p, ahead 4.8% on Monday’s closing price.
In a note to clients, the JPMorgan analysts noted that, in 2016, Morgan Advanced Materials’ management outlined six strategic objectives to drive sustainable, profitable growth.
They said: “We believe the group has made significant progress delivering against this framework although the full benefits are yet to be seen in the numbers.”
The analysts added; “After close to three years of management actions without seeing the full benefits, we believe we are at the tipping point and over the next 12-24 months the upside to earnings and to shareholders will become clear.”