Luxfer Holdings' Net Profit Margins Rise, Challenging Bearish Narratives on Earnings Quality and Valuation Tension.

Luxfer Holdings reported a net profit margin surge to 4.1% from 2.2% last year, with earnings increasing 95.3% YoY. The shares trade at $12.90, slightly above the estimated fair value of $12.27, with a P/E ratio of 21.1x. Analysts expect annual earnings growth of 26.7%, outpacing the US market, but revenue growth is expected to lag the market average. The current price is 22.1% below the analyst price target of $17.00, implying room for upside if profit and margin projections are realized.