Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
Investing.com -- Deutsche Bank (ETR:DBKGn) has downgraded Victrex (LON:VCTX) to “hold” from “buy,” and cut its price target to 850p from 990p, citing persistent pricing pressure and increased uncertainty following the company’s third-quarter trading update.
Victrex reported Q3 sales volumes of 1,057 tonnes, marking growth of 8% year-on-year and 13% on a year-to-date basis.
However, the average selling price declined to £68/kg, down from £70.8/kg in Q2 and £76/kg in the same period last year.
According to Deutsche Bank, the lack of improvement in mix remains a key shortfall, repeating a trend seen in Q2.
Growth was driven by volume increases in Value Added Resellers (VARs) and the Energy & Industrial sectors.
Volumes in Aerospace and Automotive were stable, while Electronics performed ahead of expectations. The Medical (TASE:BLWV) segment underperformed, contributing to the drop in ASP.
Alongside the trading update, Victrex announced the retirement of chief executive Jakob Sigurdsson, who is stepping down after nearly eight years in the role.
Dr. James Routh, currently the CEO of AB Dynamics plc, has been appointed as his successor and will join the group in due course.
Deutsche Bank noted that while volume growth is encouraging, it is not translating into margin gains due to the weaker product mix and ASP erosion. The bank also flagged leadership transition as adding to near-term uncertainty.