Jefferies analyst David Farrell maintained a Hold rating on ZIGUP plc today and set a price target of p350.00.
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David Farrell has given his Hold rating due to a combination of factors related to ZIGUP plc’s recent performance and future outlook. The company’s interim results for the first half of 2026 showed promising signs, with a notable increase in adjusted profit before tax driven by strong performance in the Spanish rental business and improved rental profits in the UK and Ireland. However, despite these positive indicators, the overall adjusted profit before tax saw a slight year-over-year decline, and earnings per share also decreased.
Additionally, while the introduction of a £20 million cost efficiency program is expected to enhance future financial performance, particularly by making the UK and Ireland operations more efficient, the benefits of this initiative will not be realized immediately. The unchanged dividend and the recent increase in leverage due to the fleet replacement cycle also contribute to a cautious outlook. These factors combined suggest that while there are positive developments, the stock’s potential for significant short-term gains may be limited, justifying a Hold rating.
Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is neutral on the stock.