Market's view on Morgan Advanced Materials
Published on April 2024
- Morgan Advanced Materials is noted for its strong position as a global market leader in advanced carbon and ceramic materials, benefiting from an increase in electricity usage and modest global GDP recovery, with exposure to high-growth areas like renewable energy.
- The company has been identified as a potential takeover target due to its appealing technology, established market reputation, and perceived undervaluation.
- Concerns were raised about the company’s vulnerability to opportunistic takeovers, particularly from US firms, due to its current stock price.
- Following a cyber breach, the company’s stock was expected to recover, aided by the fragmented nature of the business which allows potential for rationalisation and cross-selling opportunities.
- There are mixed reactions to the company’s handling of the cyber incident, with some investors surprised by the market’s calm response, while others quickly exited their positions fearing a significant negative impact.
- Financial analysts and investors have expressed a range of sentiments from optimism due to strong results and recovery post-cyber attack, to caution over the company’s level of debt and the lingering effects of the cyber incident on stock performance.
- The stock has seen varying levels of interest, with some watchers noting a relatively strong performance despite challenges, and others awaiting better entry points or more stable conditions.
- Analysts from notable financial institutions like Barclays and Jefferies have set optimistic price targets for the company, indicating a positive outlook from some quarters.