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Avalon Technologies stock jumps 7% on Nomura’s higher target
Nomura lifted its price target to ₹2,767.32 and pointed to a proposed $30 to $50 million joint venture with Zollner that could expand Avalon’s Europe exposure in healthcare and life sciences.
Avalon Technologies shares rose 7% on Monday, 7 September, to ₹2,352, after investors reacted positively to a bullish view from Nomura, which also raised its target price to ₹2,767.32 per share from ₹2,211.24.
Nomura kept a Buy rating on the stock and attributed much of its stance to a proposed joint venture with Zollner. The brokerage expects the partnership could strengthen Avalon’s advanced electronics manufacturing presence in Europe, broaden its global customer base, and open opportunities in areas such as healthcare, life sciences, and test and measurement.
The proposed joint venture is expected to require an investment of $30 million to $50 million. Assuming $40 million, Nomura estimated asset turns of 10x and an EBITDA margin of 15% to 17% that could lift Avalon’s FY29 earnings per share by 21%.
The rally comes as Avalon has been on a strong run, with the shares up 168% year to date. The company recently reported a June quarter that included a 50% year over year rise in Q1 revenue, 94% growth in EBITDA, and a 145% increase in Q1 PAT to ₹34.9 crore, alongside backlog growth of 23% year over year to ₹2,200 crore.