Hulk Hogan, wrestling icon, dies at 71 in Florida home
On Thursday, Jefferies analysts raised the price target for Johnson Matthey PLC (LSE:LON:JMAT) stock to £22 from £17, while maintaining a Buy rating. The analysts highlighted the company’s sale of a major segment as a significant positive factor. This move is seen as a commitment to enhanced shareholder returns.
The analysts noted that while a lower valuation multiple is appropriate due to negative top-line growth excluding the recent sale, Johnson Matthey’s market capitalization post-divestment suggests a 12% dividend yield in the medium term. This figure is four times the 10-year average and twice the maximum dividend yields, indicating potential upside.
Jefferies analysts emphasized that the revised price target is driven by an exit price significantly higher than previous estimates. They reiterated their Buy rating on the stock, reflecting confidence in the company’s future performance despite challenges.
The firm’s unchanged earnings before interest and taxes (EBIT) projections, excluding the impact of the divestment, support the revised price target. This adjustment underscores the analysts’ positive outlook on Johnson Matthey’s strategic moves and financial prospects.
Johnson Matthey’s commitment to shareholder returns and strategic divestments continues to shape its market position, as reflected in Jefferies’ updated analysis and valuation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.