Market's view on Bodycote
Published on April 2024
- A Stock Watcher expressed optimism about the company’s share price potentially reaching between 700 and 800, attributing this to recent share buybacks and good trading news. They cited cash as a key indicator of business health, noting that the company’s cash flow has improved significantly.
- There was positive feedback on strategic purchases made by the company in the US, aimed at expanding their Specialist Technologies businesses and their footprint in Aerospace and Medical heat treatment.
- A Stock Watcher highlighted the company’s strong performance in the first half of the year, with growth in key markets like Specialist Technologies, Emerging Markets, Civil Aerospace, and electric vehicles, managing inflationary pressures well.
- Another Stock Watcher noted the company’s ability to pass on cost increases effectively, which has helped maintain margins despite cost inflation.
- There was a mention of the company’s revenue growth of 29% for the 4-month period ending in October 2022, with successful price and energy surcharge adjustments covering cost inflation.
- Concerns were raised about the heavy energy usage of the company and its cyclical nature, despite strong management and business quality.
- A discussion on the share price’s historical lows and potential future lows was initiated to understand recession impacts and market timing strategies.