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Shares in FTSE 250 manufacturing firm Senior (LSE:SNR) have fallen 25% this year. As a result, the average analyst price target is more than 50% above the current level.
I’m sceptical of the idea the stock is set for a big recovery in the near future. But I do think there’s a lot to like about the underlying business – and investors should take note.
What does Senior do?
Senior is a specialist in fluid conveyance and thermal management (FCTM). In other words, it makes pipes and tubes that liquids flow through and systems that keep machines cool.
At the moment, around two-thirds of the firm’s revenues come from its aerospace division. This is a heavily regulated industry, which creates a high barrier to entry for competitors.
The trouble with this, however, is that the industry is a duopoly. And when Boeing and Airbus get into difficulties – as they have done…
