It said that while it’s "very positive" on the Fantech deal and the overall outlook for Fantech, the stock now looks up with events, having risen more than 75% in the past year and more than 35% in the year to date.

Davy said: "It is on circa 20x/17.5x our July 2025/26 earnings forecasts which we think is broadly fair and our valuation analysis yields a price target of 615p, broadly similar to the current level; hence for now at least we are pulling back our recommendation to ‘neutral’, having been 'outperform' since initiating coverage in March 2021 - since when the stock has outperformed the FTSE 250 by around 50%."

Ventilation products supplier Volution announced in September that it had agreed to buy Fantech Group in Australasia from Elta Group for up to AUD280m (£144m).

Fantech, which includes the Fantech, Ideal Air, NCS Acoustics, Air Design, Major Air, Systemaire and Burra Steel brands, is a provider of both commercial and residential ventilation in Australia and commercial ventilation solutions in New Zealand.

At 1210 BST, the shares were down 3% at 575p.