Source: Sharecast
Berenberg said Hilton Food's actions as part of this strategic evaluation will result in it focusing on its core aptitudes, moving away from non-core competencies. Ultimately, Berenberg expects the result of this process to be "a simpler, more effective" Hilton Food, and that is a more attractive proposition for major retailers to partner with.
"We have adjusted our earnings forecast to remove the projected contribution from Fairfax Meadow. We have lowered our FY 2026E forecast by £200m at the revenue level and c£8m at the pre-IFRS adjusted EBITDA level. We now project FY 2025E net debt (excluding leases) of £124m, for net debt/adjusted EBITDA of 0.8x, -0.1x versus FY 2024," said the German bank, which kept its 'buy' rating on the stock.
Berenberg added that Hilton trades on a 10.5 times 12-month forward price-to-earnings ratio, more than one standard deviation below its long-run historical average.
Over at Canaccord Genuity, analysts raised their target price on exploration and production firm Zephyr Energy from 10.5p to 14p on Monday, following the outcome of the Sproule competent person's report undertaken on the Paradox's Cane Creek reservoir of the White Sands Unit.
Canaccord Genuity noted the CPR comes with "a significant upgrade" to the Zephyr's reserves and resources following the successful testing of 36-2R earlier in the year.
"The CPR lays out a 1P (proved recoverable) reserves value of 14.8 mmboe, covering the first 7 wells to be drilled (including already drilled 36-2R & 16-2). The company's 2P reserves (proved + probable) of 35.3 mmboe covers the first 12 wells to be drilled, with the CPR's total recoverable estimate of 74.2 mmboe (+350%) representing a full field development of the Cane Creek reservoir," said Canaccord, which has a 'speculative buy' rating on the stock.
The Canadian bank said it was important to note that the Cane Creek reservoir represents only one of nine layered reservoirs, which all show promise, but the remaining overlying eight have not yet been tested, with the potential of these assets representing the company's 2U resources of 270 mmboe.
"We update our valuation to reflect the new reserves and resources estimates from the Sproule CPR, resulting in a material 33% increase in our risked-NPV10 valuation to 14.3p (25.3p un-risked). As such, we increase our target price to 14p (from 10.5p). We maintain our Speculative Buy rating, highlighting the significant 380% implied upside our target price offers to Friday's close," concluded Canaccord.
Reporting by Iain Gilbert at Sharecast.com
