Broker tips: MP Evans, Trustpilot, Haleon, Domino's Pizza
By Iain Gilbert
Date: Tuesday 16 Sep 2025
(Sharecast News) - Canaccord Genuity has hiked its target price for palm oil group MP Evans from 1,500p to 1,650p on Tuesday after the AIM-listed firm's positive first-half results, saying the stock continues to be "undervalued".
The Indonesia-focused palm oil producer said that, while output fell slightly on last year, turnover for the six months to 30 June was $179.4m, up from $163.7m a year earlier.
Gross profits totalled $63.4m, up 51% on last year, helped by a 13% increase in crude palm oil (CPO) prices and an increase in the gross margin to 35% from 26%. Margins supported by a change in input mix with more of the company's own harvest being processed this year, bolstered by lower fertiliser costs due to the timing of application, and a weakening Indonesian currency.
"Following July's indication of a good H1-25, MP Evans has now confirmed it. Operational delivery was solid, with the crop mix shifting further toward owned fruit and scheme smallholders, and away from independent purchases," said Canaccord Genuity, which has a 'buy' rating on the stock. "Deliberate restraint on third-party buying reduced external crop purchases by 39% to just under 120k tonnes, which took total processed volumes down 3% to 737.7k tonnes, but preserved quality and margins," the broker explained.
Trading at an enterprise value-to-EBITDA ratio of just 5x on 2026 estimates, the stock "remain[s] attractive relative to its Asian peers", the broker said.
Analysts at Berenberg reduced their target price on reviews website operator Trustpilot from 420p to 300p on Tuesday following the company's interim results.
Berenberg said Trustpilot's first-half results showed that it had delivered "strong profitability and cash generation" in the six months ended 30 June, as well as another upgrade to its FY25 adjusted underlying earnings margin guidance.
The German bank stated that Trustpilot had shown that it has made progress across its financial and operational KPIs, as it continues to demonstrate the efficacy of its product offering to larger organisations, with recent enterprise customer wins including Barclays, Boots, Amundi, Lindt and Experian.
As such, Berenberg, which has a 'buy' rating on the stock, upgraded its adjusted EBITDA forecasts by 9% each for FY25, FY26 and FY27, primarily reflecting increased margin expectations," said Berenberg.
Berenberg also highlighted that while it had reduced its price target on the stock, this was a result of "a more prudent valuation methodology", rather than any decline in Trustpilot's business prospects, which it believes "remain strong".
"While we upgrade our adjusted EBITDA estimates by 9% in each of FY25, FY26 and FY27, we also refresh our DCF valuation model, increasing our WACC to 10.9% (previously 8.0%), which we think is a more suitable level for a business of Trustpilot's maturity and risk profile," concluded Berenberg.
Barclays downgraded GSK's consumer health spinoff Haleon to 'equalweight' from 'overweight' on Tuesday as it stated question marks persist over the US and said there were "a few new clouds on the horizon".
Barclays noted that the US accounts for 34% of sales and said it was seeing slower category growth and destocking.
"Haleon is overweight declining US drug stores," it said, adding that the US was the reason Haleon lowered its 2025 organic sales growth guidance to around 3.5%. Barclays also said it still sees short-term risks.
"Haleon has a new US head but we move to the sidelines as we await the plan," it said.
Domino's Pizza slumped on Tuesday as Deutsche Bank downgraded the stock to 'hold' from 'buy' and cut its price target on the stock to 235p from 309p, pointing to near-term cautiousness.
"The investment case for Domino's Pizza has materially changed over the last two years," the German bank said. "From a formula which focused on returning the majority of free cash flow to shareholders through buybacks, management has been keen to reinvest this cash, including a potential brand acquisition, in order to accelerate earnings growth.
However, Berenberg said this comes at a cost, noting that uncertainty over timing and execution has weighed on the stock, and as a consequence, a resumption of a share buyback has naturally become "an increasingly attractive alternative".
Deutsche Bank said recent moves to announce a small buyback and launch a chicken sub-brand appear to be somewhat of a compromise.
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