RBC predicts end-market recovery for Volution, ups target price
By Benjamin Chiou
Date: Friday 25 Jul 2025
(Sharecast News) - RBC Capital Markets has raised its target price for Volution Group from 700p to 740p after the ventilation products maker's better-than-expected second-half performance, keeping an 'outperform' rating on the stock.
The broker said that results for the year to 31 July should come in ahead of forecasts, with the company pointing to revenue growth of "over 20%" at constant currency, compared with RBC's 18.6% improvement expected, due to a strong performance in the UK and the integration of Fantech, acquired in December.
The guidance "underscores our positive outlook" for the next financial year, RBC said, predicting a recovery in underlying construction markets.
"There are evidently some signs of improvement in new build already, though we expect the more fulsome recovery across underlying markets has been pushed further into 2026," the broker said.
"Meanwhile, we expect FAN to continue its solid performance with a focused organic growth strategy, augmented by efficiency improvements in support of margins, and a well-oiled M&A strategy."
The stock, which jumped 4% on Thursday following the update, was up a further 0.7% at 661.3p by 1006 BST.
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