Jefferies analyst James Wheatcroft maintained a Buy rating on Inchcape today and set a price target of p1,050.00.
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James Wheatcroft has given his Buy rating due to a combination of factors, including solid delivery against expectations and supportive forward guidance. FY25 earnings per share slightly exceeded consensus, while profit before tax met forecasts, and management’s outlook for modest revenue growth and stable margins aligns with current market estimates, backed by ongoing momentum in the Americas and Europe/Africa.
He also highlights Inchcape’s strong cash generation and shareholder returns, evidenced by a new £175m buyback following a recently completed £250m program, resulting in 13% of shares repurchased since August 2024. In his view, the market still undervalues the company’s medium-term ambitions for steady organic growth, robust returns on capital, significant free cash flow and double‑digit EPS growth, as implied by attractive valuation metrics and yields.
Wheatcroft covers the Consumer Cyclical sector, focusing on stocks such as Entain plc, Flutter Entertainment PLC, and J D Wetherspoon. According to TipRanks, Wheatcroft has an average return of 4.3% and a 47.13% success rate on recommended stocks.