Canaccord Genuity lowers target price on Accsys Technologies

Canaccord Genuity said it had opted to revise its target price on the stock following the announcement that completion of Accsys' new plant in Hull had been impacted by "successive revisions to timelines" relating to reworking, Covid-19, and the termination of the lead engineering, procurement and construction contractor.

The Canadian bank said that June's trading update from Accsys had detailed a focus on plant commissioning, with operation in "the coming months". However, it said the latest trading update had confirmed that progress had continued at a slower pace than anticipated, with reduced activity on site and a focus on reducing costs by the consortium of partners.

"Operational activity is now not expected in 2022, shifting our forecasts to the right," said the analysts

However, Canaccord, which stood by its 'buy' rating on the stock, acknowledged that manufacturing of and trading in its core Accoya product unit had remained "highly robust", and said it remains confident in both near-term cash flows and the stock's long-term story.

Reporting by Iain Gilbert at Sharecast.com