Deutsche Bank has revised its price target on Senior Plc (SNR: LN) (OTC: SNIRF), dropping it to GBP2.20 from the previous GBP2.50.
The investment firm continues to endorse a Buy rating for the stock. This adjustment comes amid the ongoing difficulties faced by the commercial aerospace manufacturing sector, which has impacted Senior's Aerospace division.
The company's Aerospace business is now anticipated to have a weaker performance in the second half of the year compared to the first half, although it is still on track to show overall progress for the year.
The forecast for Senior's full-year 2024 earnings before interest, taxes, and amortization (EBITA) has been decreased by 23% to GBP44.0 million, down from the earlier estimate of GBP57.0 million. Additionally, the earnings per share (EPS) projection has been reduced by 29% to 6.0p, from the previously expected 8.4p.
The revisions in the financial estimates are attributed exclusively to the lowered expectations for the Aerospace sector. The commercial aerospace manufacturing industry has been facing significant challenges, which have now led to a direct impact on Senior's projected financial performance.
Despite the reduction in the price target and earnings estimates, Deutsche Bank's continued endorsement of a Buy rating indicates a belief in the long-term value of Senior Plc's shares. The firm's analysts have factored in the current industry challenges while maintaining a positive outlook on the stock's potential.
Senior Plc's management and stakeholders will likely monitor the developments in the aerospace sector closely, as the company navigates through the current industry headwinds.
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