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Jefferies has made adjustments to Senior Plc's (SNR: LN) (OTC: SNIRF) financial outlook by reducing the price target to GBP1.90 from the previous GBP2.10, while still recommending a Buy rating on the stock.
The revision follows the company's third-quarter 2024 trading update, which highlighted that its Aerospace division is experiencing challenges due to an ongoing Boeing (NYSE:BA) strike and reduced deliveries from a key Airbus supplier.
The strike at Boeing, now in its fourth week, alongside the Airbus supplier's lower output expected to continue until the second quarter of 2025, has led Jefferies to significantly revise down its full-year 2024 and 2025 forecasts for Senior Plc.
Despite these downward revisions, Jefferies remains optimistic about the company's long-term recovery potential and its strategic portfolio evolution.
The firm's analyst pointed out that while the setbacks affecting Senior Plc are seen as temporary, it could take several quarters for market sentiment to recover. The new price target of 190 pence reflects this cautious short-term outlook even as the firm maintains a positive long-term stance on the stock.
Senior Plc, a manufacturing company, is navigating through a period of industry-wide challenges, particularly in its Aerospace division. The impact of the Boeing strike and the Airbus supplier issue underscores the interconnected nature of the aerospace supply chain and its susceptibility to disruptions.
Investors in Senior Plc are being advised of the current situation, with the expectation that the company will need some time to overcome these temporary setbacks.
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