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On Monday, Berenberg reaffirmed its stance on Johnson Matthey PLC (LON:JMAT:LN) (OTC:JMPLY), maintaining a Hold rating and a price target of GBP13.80. The firm’s analyst, Sebastian Bray, cited ongoing challenges in the automotive sector due to trade tensions as a reason for the steady outlook. Bray pointed out that while upcoming fiscal year 2025 earnings, set to be released on May 22, may provide some clarity on whether the company’s earnings before interest and taxes (EBIT) will align with Berenberg’s forecast of £405 million or the higher consensus of £421 million, this wouldn’t be the primary influence on the stock’s performance.
According to Bray, the more significant factors for Johnson Matthey’s shares are the company’s reaction to activist pressure from approximately 10% shareholder Standard Investments and the impact of platinum prices and U.S. consumer confidence on the business. He noted that the recent approval by the European Parliament on May 8 to relax CO₂ standards for European automakers could be beneficial, but it is unlikely to significantly alter the outlook for the company’s autocatalyst business, which is seen as being in a long-term decline.
Johnson Matthey, a company specializing in sustainable technologies, including emission control catalysts, is expected to provide guidance for 2026 in its upcoming earnings report. Investors and analysts alike are closely monitoring the situation, as the company navigates an evolving automotive landscape and shareholder expectations.
The market is also watching the influence of external factors such as platinum prices, which are crucial for the company’s catalytic products, and the level of consumer confidence in the United States, which can affect automotive sales and, consequently, demand for Johnson Matthey’s products. The company’s strategic response to these challenges will be pivotal in determining its future financial performance and stock valuation.
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