Meggitt PLC (LON:MGGT) has been downgraded to ‘neutral’ from ‘buy’ by analysts at Citigroup as the broker said there was “limited further upside” in the stock following a recent surge on news of a possible coronavirus vaccine.

In a note on Thursday, the bank retained its 430p target price on the FTSE 250 aerospace engineer, predicting that the company’s civil aftermarket revenues will get back to 2019 levels by 2023, with business jets to recover first and wide body aircraft recovering last.

READ: Meggitt lower after shaky start to the third quarter

Citi added that it was 12-13% above 2022 and 2023 earnings (EBIT) consensus estimates due to their stronger margin recovery forecasts, however they said they believed the shares will “settle lower as the dust settles”.

Shares in Meggitt fell 2.2% to 374.7p in lunchtime trading.

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