Victrex plc (LON:VCT) has been upgraded to ‘equal weight’ from ‘underweight’ by analysts at Barclays, who said there was “little reason” to think the polymer specialist will underperform going forward.
In a note on Thursday, the bank also upped its target price for the group to 1,980p from 1,710p, saying they believed the downgrade cycle “is over” after earnings per share troughed for the firm in 2020, adding that the stock is “already pricing in a recovery”.
READ: Victrex cuts dividend 23% as profits fall but new year starts ‘solidly’
Barclays also said following a “smaller de-stock and delay to the de-bottlenecking” at the company, they had raised their 2021 pre-tax profit estimates by 5% to £82mln, which it said is now “broadly in line with consensus”.
Victrex shares rose 1.2% to 2,118p in late-morning trading.