Vesuvius Shares in Focus After Jefferies Upgrade and Strategic Acquisition

Shares of Vesuvius PLC (LON:VSVS) have garnered renewed attention following a revised price target from Jefferies and a strategic acquisition poised to bolster the company's market position.

The molten metal flow engineering firm is navigating a complex environment, with analyst sentiment reflecting both optimism and caution.

Jefferies increased its price target on Vesuvius to 500p from 490p, reiterating a “Buy” rating on the stock. This upward revision follows Vesuvius's proposed acquisition of the Molten Metal Systems (MMS) business from Morgan Advanced Materials, a move considered a positive surprise within the market.

The analyst's research note highlights the deal's potential benefits, suggesting it represents a sound strategic fit for Vesuvius.

The market responded positively to the acquisition news on August 22, 2025, with shares rising by 2.8% to 362.40 pence.

This increase reflects an initial recognition of the potential synergies and expanded market reach that the MMS acquisition could bring.

The acquisition, valued at an enterprise value of £92.7 million, is expected to significantly enhance Vesuvius's presence in the non-ferrous market segment, increasing the Foundry division's revenue share from non-ferrous sales from 21% to approximately 27% on a pro forma basis.

Vesuvius anticipates substantial cost synergies from the MMS acquisition, projecting an EBITDA uplift of at least 50%. Furthermore, the deal is expected to be accretive to the group's return-on-sales and earnings per share from the first year of ownership, underscoring the financial rationale behind the acquisition.

The company's ability to integrate MMS effectively and realize these projected synergies will be critical in validating the market's initial optimism.