- Bodycote
- 12 March 2026 10:00:59
Source: Sharecast
The bank, which kept its price target at 775p, said that strategically, the business is making sound progress towards its 2028 20% margin target.
"However, end markets are still mixed somewhat limiting organic growth," RBC said.
The bank said Bodycote has made good progress improving its end market mix and that exposure to high growth segments should go from 35% in FY23 to 45% post-site disposals and eventually target more than 50% by 2028.
However, it still sees significant exposure to structurally challenged markets as a long-term headwind to achieving Bodycote's targeted mid-single digit growth rate.
"With the share up strongly from its lows and the P/E at 15.4x26E now in line with the 10- year average, we see more limited near term upside potential."
At 0945 GMT, the shares were down 4.7% at 728.50p.