This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Observations – For
Observations – Against
Shares in long-term uptrend. Diversifying from catalytic converters into electric vehicle battery materials, building new UK plant, to capitalise on trend for environmentally-friendly transport. Broker Deutsche Bank (27 Jun) expects Q1 results to meet guidance of mid-to-high single-digit profit growth. Broker Morgan Stanley (4 Jun) said JMAT story is compelling, with growth and the outlook improving in the medium term.
Risks to JMAT shares include a disappointing trading statement in July, headwinds from currencies reducing profits, supply issues with battery materials (China exports a lot rare earth minerals) and a low 2.4% dividend yield being less attractive than UK Index peers. A global trade war could hamper demand for all products.
Broker consensus is bullish, with 59% of analysts saying Buy and only 12% saying Sell. Furthermore 67% of broker targets suggest upside from current levels. The consensus target of 3797p is just below our short-term objective of June highs.
Next Event: Trading Statement, 26 Jul
Latest Broker 12-Month Consensus: 59% Buy, 29% Hold, 12% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 1.6 | -4.5 | 10.6 | 14.3 | 28.3 | 18.0 | 13.2 | 14.9 | 20.5 |
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Prepared by Michael van Dulken, Head of Research