Barclays starts Morgan Advanced Materials at ‘overweight’

Barclays initiated coverage of Morgan Advanced Materials on Friday with an ‘overweight’ rating and 365p price target.

"We think improving end-market exposure will drive higher through-cycle growth for MGAM, with the group EBITA margin expanding to mid-teens and a new peak," it said.

The bank noted that focused M&A is on the agenda, but said it also sees scope for a supportive capital return, while longer term further portfolio rationalisation could drive multiple expansion.