Berenberg initiates coverage on Senior stock with Buy rating

Published 08/08/2025, 12:08
Berenberg initiates coverage on Senior stock with Buy rating

Investing.com - Berenberg has initiated coverage on Senior Plc. (LON:SNR) (OTC:SNIRF) with a Buy rating and a price target of GBP2.75.

The research firm views Senior’s recent agreement to sell its Aerostructures business as a "pivotal moment" for the company, creating an opportunity to structurally increase group operating margins.

Berenberg notes that following the completion of the sale, Senior will be able to focus on higher growth and more value-added products while gaining additional capital allocation options.

The divestiture is expected to shift Senior toward a more balanced revenue base between industrial and aerospace end-market exposure, prompting Berenberg to broaden its peer comparison beyond traditional aerospace and defense companies to include more industrial fluid control peers.

Berenberg anticipates rerating potential for Senior stock as revenue growth, margins, and cash generation increase following the strategic repositioning.

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