LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg raised their target price on engineering and manufacturing group Avon Rubber from 3,510.0p to 4,065.0p on Thursday.
Berenberg said it suspects very few people would mark 2020 down as a year to remember. However, in Avon's case, it said the year had been one of "the most transformational" in the company's long history.

"In one of the most challenging years in recent history, the continuing Avon business delivered 0.1% organic growth, a 50bp margin improvement and 30% dividend growth - a strong performance, in our view, and one deserving of a share price performance well ahead of peers this year," said the German bank.

On the other hand, while Berenberg said the business was also well set for a strong 2021, it continues to struggle with the group's valuation which, at 35.2 times its September-2022 price-to-earnings ratio, it stated was "materially ahead" of all comparable metrics.

"Hence, with vaccine news providing greater hope for some value-cyclical rebound, we think there is greater near-term value elsewhere," said the analysts, which also reiterated their 'hold' rating on the stock.

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