Street Calls of the Week
Investing.com - Jefferies initiated coverage on Rosebank Industries PLC (ROSE:LN) with a Buy rating and a price target of GBP4.35, citing potential for approximately 30% total shareholder return.
The investment bank highlighted Rosebank’s business model, which replicates the Melrose (LON:MRON) "Buy, Improve, Sell" approach, combined with what it described as a proven management team and credible levers for margin expansion at Electrical Components International (ECI).
ECI, which will be Rosebank’s inaugural acquisition, is a US-based provider of end-to-end solutions for wire harnesses, control boxes, and other value-added components serving industrial markets including appliances, HVAC, access equipment, machinery, automotive, and automation technologies.
Jefferies noted that the improvement opportunity at ECI is substantial, with pro-forma ECI EBIT expected to rise by 30% between FY25 and FY28, according to the firm’s estimates.
The investment bank projects an uplift in ECI’s margins from approximately 13% in FY24 to more than 18% in the coming years, supporting its positive outlook on Rosebank Industries.
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