Volex Plc’s shares surged nearly 21% on Tuesday after Jefferies upgraded the company’s profit forecast and raised its revenue projections for the coming years, citing sustained demand across multiple business segments.
The London-listed cable manufacturer, which transitioned from the AIM market to the London Stock Exchange’s Main Market on July 24, reported that trading in the four months to July 31 rose 28% year-on-year on a constant-currency basis. Monthly average sales for the period were 8% higher than the monthly average recorded in the second half of the prior fiscal year, according to Jefferies.
Jefferies lifted its full-year profit forecast to $145.9 million from $137.4 million, exceeding the consensus estimate of $138.3 million. The broker also raised its FY2027 revenue forecast by 3% and increased its earnings-per-share projection by 8% to 49.3 cents, up from 45.8 cents. The price target remained unchanged at 700 pence. Jefferies valued Volex at 10.2 times annualized FY2027 EBITA and 13.5 times price-to-earnings, describing the multiples as "undemanding given the growth opportunity."
Analysts tracked by Jefferies project FY2027 revenue in a range of $1.33 billion to $1.35 billion. Volex operates across five customer segments—Data Centre, EV & Electrification, Consumer Electricals, Off-Highway, and Medical—with demand sustained in data centres and electric vehicle-related applications. The company also completed the acquisition of the remaining stake in Kepler SignalTek, expanding its presence in patient-to-device connectivity within the medical segment.
Jefferies reiterated its "buy" rating, stating that the outlook update should be "received well" amid recent share price weakness, reinforcing confidence in Volex’s growth and earnings trajectory.
