Market's view on Coats
Published on April 2024
- Stock watchers noted a surprise in the results with a slight increase in dividends; however, earnings per share remained stagnant, suggesting a share price expectation around 72 pence in the medium term.
- Observations were made on the recent rise in share price, with one watcher indicating it lacked logical explanation despite strong buyer support at 78/79 pence.
- Comments on the trading statement highlighted it met expectations without showing improvement, with concerns about the company being a price taker and issues in performance materials sector.
- The share was considered cheap by some watchers, with predictions of stagnation around 72 pence unless trading figures improve.
- Despite a significant sell-off in shares, there was confidence among some investors in the share’s value around 74 pence, with no indication of major shareholders reducing their stakes.
- The share price was noted to fluctuate frequently, offering buying opportunities around 67/68 pence, with potential profits from short-term trading.
- Positive long-term views were expressed on the company’s performance materials sector, suggesting a robust future despite the current market conditions.
- There was speculation about the company’s share price reaching between 80 pence and 105 pence in the future, with a conservative estimate of significant movement beyond 100 pence after fiscal years 2028 or 2029.