There have been series of ‘nasties’ at GKN (LON:GKN), analysts at Hargreaves Lansdown have said. The comments came as the company announced that it had sacked its new chief executive, weeks before he was due to take the helm at the blue-chip company, and warned of a further writedown at its North American aerospace division.
GKN’s share price remains subdued today, following the previous session’s slump, and was 0.27 percent down at 295.20p as of 10:25 GMT, largely in line with losses in the broader market, with the benchmark FTSE 100 index currently standing 0.30 percent down at 7,364.74 points. The group’s shares have lost just under four percent of their value over the past year, and are down by about 11 percent in the year-to-date.
Series of ‘nasties’
Citywire quoted Hargreaves Lansdown analyst Nicholas Hyett as saying yesterday that there had been a series of ‘nasties’ at GKN, noting that while working capital writedowns happened from time to time, “when they come in waves of ever increasing size investors start to get worried, and with good reason”.
“If US aviation is broken, what about the rest of the business?,” he asked, further pointing out that “while losing one chief executive is unfortunate, effectively losing two at once starts to suggest carelessness”.
“Hopefully whoever takes over from last minute substitute Anne Stevens, gets to kick a ball before they’re unceremoniously hauled off the pitch,” the analyst concluded.
Other analysts on GKN
Jefferies and Deutsche Bank both reaffirmed the troubled group as a ‘buy’ today, valuing the shares at 425p and 395p, respectively. JPMorgan Chase & Co also remains bullish on the shares, seeing the company as an ‘overweight’ with a price target of 378p. According to MarketBeat, GKN currently has a consensus ‘buy’ rating and an average price target of 389.79p.