S&P Equity Research revised its target price from 255p to 320p before the company’s results today. Analysts Andrew Douglas and Pzremslaw Nowak will be looking at volumes growth and operational improvements in today’s update. “We expect management to be reasonably upbeat in respect of the outlook, but also highlight the usual lack of visibility across the group,” they write.
Following an analysts’ meeting this week, Seymour Pierce Research regards the stock as an “add” but stops short of giving it a “buy” rating. Caroline de La Soujeole and Kevin Lapwood give the stock a 300p target price, versus its current price around 270p. The company has flagged up opportunities for growth in Europe, particularly Eastern Europe but “we believe it is too early to get too excited about it,” say Seymour Pierce.
The firm’s interim results met expectations, according to Brewin Research, with the exception of net debt being £15m higher than thought at £49.6m. “While underlying progress is admirable,” write Chris Glasper and Sahill Shan, “there are some signs that competitive pressures are having an impact.” They recommend a “hold” with a target price of 520p versus a current price of 515p.