Jefferies stays at 'buy' on Avon Protection, thinks long-term story unharmed

In their judgment, the long-term 'equity story' behind the maker of personal protection gear for the world's militaries and police remained "positive".

Earlier in the same session, the firm had cut its guidance for full-year 2021 and 2022 sales, citing a mix of delayed contract awards and supply chain disruptions as the cause.

Nevertheless, Jefferies emphasised that the constellation of short-term challenges were not of Avon's making and hence, in the broker's view, did not take away from the long-term outlook.

Indeed, Avon had stood by its guidance for 2023.

"Ultimately, while the magnitude of the consensus downgrades will not be well-received, we view the equity story as being intact, the group's fundamentals are still strong, there are attractive top/bottom-line opportunities, and a Balance Sheet to play with," they said.

"However, sentiment will be impacted and confidence in the new guidance will need to be rebuilt."

Jefferies also stood by its 4,180.0p target price.

As of 1045 BST, shares of Avon Protection were trading down by 24.47% to 2,228.0p.