Elementis: Resilient Performance, Margin Expansion and Strategic Divestment Underpin Buy Rating

Vanessa Jeffriess, an analyst from Jefferies, maintained the Buy rating on Elementis. The associated price target is p210.00.

Vanessa Jeffriess has given his Buy rating due to a combination of factors including Elementis’s resilient performance in a challenging chemicals environment and its solid margin expansion well ahead of earlier long‑term targets. She highlights the success of self‑help measures and new product initiatives, particularly the strong fourth‑quarter momentum in Personal Care, which she sees as a key driver for further share price re‑rating.

Jeffriess also points to the strategic divestment of the pharma business at an attractive valuation, which should further enhance group margins while allowing cash to be returned to shareholders. In addition, she notes the company’s strengthening balance sheet, with leverage expected to fall to about 1x Net Debt to EBITDA by FY26, and management’s comfort with current consensus forecasts, all of which underpin her positive stance on the stock.

Jeffriess covers the Consumer Cyclical sector, focusing on stocks such as Schaeffler, Valeo, and AB Dynamics. According to TipRanks, Jeffriess has an average return of 7.3% and a 59.05% success rate on recommended stocks.