Barclays starts coverage of Dowlais at 'overweight'

Barclays initiated coverage of Dowlais on Friday with an ‘overweight’ rating and 110p price target.

"We believe that Dowlais ‘ticks the right boxes’, screening strongly against several key criteria that we expect investors to look for in 2024 in the EU Supplier space, including strong earnings momentum, an attractive powertrain story, and possible corporate actions," the bank said.

Automotive engineer Dowlais was spun off from Melrose Industries in April 2023 so that it could concentrate on the GKN Aerospace business.

At 0935 GMT, the shares were up 4.7% at 92.06p.