The FTSE 250 index has been a bit flat to this point in 2025. Nevertheless, that doesn’t imply its constituent companies haven’t been making good progress. And Deutsche Financial institution has noticed one firm it believes is primed to surge. A lot in order that earlier within the 12 months its workforce of analysts issued a Purchase suggestion with a share price goal that means a 60% acquire is probably on the horizon for fast-acting buyers.

Investigating the chance

The FTSE 250 inventory in query is Victrex (LSE:VCT). And over the past 5 years, the inventory’s hardly been a cash maker for shareholders, given its market-cap has been greater than slashed in half. However that doesn’t imply it nonetheless can’t be a profitable funding at present. In spite of everything, a profitable turnaround by administration may ship substantial restoration positive factors.

That definitely appears to be what Deutsche’s betting on. To be truthful, there are early indicators a restoration’s underway. Industrial demand for the agency’s distinctive PEEK polymers is again on the rise, with inventory-destocking headwinds steadily coming to an finish.

Subsequently, manufacturing volumes have been restored to 2022 ranges. And on the similar time, working optimisations and efficiencies have paved the way in which for superior free money circulate era, whereas income development has returned, albeit by a small quantity.

Evidently, that’s a welcome change of tempo in comparison with the lacklustre outcomes the corporate has been delivering in recent times. This probably additionally explains why different analysts have begun reassessing their suggestions to be extra bullish.

Taking a step again

Getting in early earlier than a inventory restoration kicks off might be very profitable, paving the way in which for substantial double-digit positive factors. Nevertheless, that additionally comes with danger if the underlying enterprise can’t maintain up with expectations. Within the case of Victrex, the corporate isn’t out of the woods fairly but.

Its highly-anticipated China manufacturing facility was lately accomplished, increasing the agency’s attain into Asian markets. However to this point, manufacturing challenges have prevented it from working at full capability. Consequently, administration’s manufacturing forecast for its 2025 fiscal 12 months (ending in September) was slashed from up to 200 polymer tonnes to only 50 tonnes.

Moreover, with lower-margin valued added reseller prospects driving the majority of latest demand, income have but to maneuver again in the precise route. And with considerations that additional challenges could lie forward, the analyst workforce at Jefferies has modified its suggestion from Maintain to Underperform.

In different phrases, not each institutional analyst is satisfied Victrex is on the verge of a rebound.

The underside line

Conflicting opinions amongst analysts is nothing new within the inventory market. Nevertheless, within the case of Victrex, I believe some wholesome scepticism is warranted. The agency’s monitor file of hitting targets has been a bit patchy of late. And if that sample continues transferring ahead, the FTSE 250 inventory’s restoration is probably not as shut as some analysts consider. With that in thoughts, I’m maintaining this enterprise on my watchlist for now.