In a report released today, Andrew Douglas from Jefferies reiterated a Buy rating on Essentra, with a price target of p140.00.
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Andrew Douglas has given his Buy rating due to a combination of factors that underline Essentra’s strengthening fundamentals and recovery prospects. The company delivered fiscal 2025 results broadly in line with both Jefferies’ and market expectations, demonstrated notably better second-half performance, and entered fiscal 2026 with a solid order book and clear strategic progress that supports medium-term growth.
He also highlights robust cash generation, beneficial pricing, and market share gains, alongside management’s confident outlook and unchanged long-term EBITA margin ambition of 18% despite current margins being lower. While acknowledging macro risks for U.K. industrials, he sees substantial scope for further recovery, operational efficiencies including ERP benefits, and a more active M&A cadence, leading him to conclude that Essentra’s growth story remains intact and justifies a continued Buy rating.