Goldman refreshes its gold stocks outlook for 2025
On Tuesday, Deutsche Bank (ETR:DBKGn)’s analyst Kevin Fogarty revised the price target for Victrex (LON:VCTX) Plc (VCT:LN) (OTC:VTXPF), a leading manufacturer of high-performance polymers, to GBP9.90 from GBP10.50. Despite the reduction, the analyst maintained a Buy rating on the stock. The adjustment came after Victrex reported interim results that diverged from Deutsche Bank’s expectations due to several factors, including a weaker mix impact, foreign exchange (FX) fluctuations, and a slower ramp-up at the company’s China facility.
Victrex’s H1 25 sales volumes showed a significant increase, reaching 2,018 tonnes, which represents a 16% rise compared to the same period in the previous year. This growth exceeded Deutsche Bank’s estimates of 1,898 tonnes. The company’s group revenue for the first half of 2025 was reported at £145.8 million, marking a 5% year-over-year increase, and an 8% rise on a constant currency basis, against the bank’s estimate of £144.9 million.
The average selling price (ASP) for Victrex’s products during this period was £72.3 per kilogram, showing a 10% decrease, or a 7% decline when adjusted for currency changes. This decline in ASP contributed to a gross profit of £64.3 million, which is 4% lower year-over-year and fell short of Deutsche Bank’s forecast of £67.4 million.
Furthermore, Victrex’s adjusted profit before tax (PBT) for the first half of 2025 amounted to £23.2 million, a reduction of 17% from the previous year and below the £25.7 million estimated by Deutsche Bank. The analyst attributed this shortfall to the factors affecting the mix and FX, as well as the slower progress in the company’s China operations, despite the acceleration in volume growth during the period.
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