Volex PLC shares surged as much as 20.27% on Tuesday after the British cable manufacturer reported strong trading and an upgraded profit outlook from broker Jefferies.
The London-listed company’s stock rose to 685 pence in early trading, reflecting a nearly 21% gain. Volex, which moved from AIM to the London Stock Exchange’s Main Market on July 24, manufactures power and data cables for five customer divisions: Data Centre, EV & Electrification, Consumer Electricals, Off-Highway, and Medical.
Revenue in the four months ended July 31 climbed 28.0% year-on-year on a constant-currency basis, driven by sustained demand in data centres and continued growth in electric vehicle and electrification segments. The monthly average for the first four months of the year was 8% higher than the monthly average for the second half of the prior fiscal year.
Jefferies raised its full-year underlying operating profit forecast to $145.9 million, up from $137.4 million, exceeding the consensus estimate of $138.3 million. The broker also lifted its earnings-per-share forecast to 49.3 cents from 45.8 cents for the fiscal year ending March 2027. Revenue guidance was increased by 3%, while the price target remained unchanged at 700 pence.
Volex trades at 10.2 times annualized FY2027 EBITA and 13.5 times forward price-to-earnings, according to Jefferies. Analyst consensus compiled on August 24 placed FY2027 revenue between $1.33 billion and $1.35 billion. The company also completed the acquisition of the remaining stake in Kepler SignalTek during the period, expanding its medical segment into patient-to-device connectivity.
Jefferies maintained a “buy” rating on Volex, noting the update was expected to be well-received amid recent share price weakness and reinforcing confidence in the company’s growth and earnings trajectory.
