Broker tips: Baltic Classifieds, Morgan Advanced Materials, GSK
By Iain Gilbert
Date: Tuesday 25 Nov 2025
(Sharecast News) - Baltic Classifieds slumped on Tuesday after JPMorgan downgraded the shares to 'underweight' from 'overweight' and slashed its price target on the stock to 630p from 770p as part of a broader note on global online classifieds.
JPM said the rapid adoption of Generative AI among consumers was starting to impact established online classifieds models. It noted that for the past decade, online classifieds players have relied on the network effect to drive traffic leadership, low customer churn/ pricing power, and eventually high margins and high multiples.
"From here though, we argue that incumbents will have to materially increase their efforts to maintain their gatekeeper position by delivering undisputable, top-notch, now AI-driven search experiences and relevant information to compete with GenAI agents and new aggregators," it said.
RBC Capital Markets downgraded its stance on Morgan Advanced Materials on Tuesday to 'sector perform' from 'outperform' and cut the price target to 210p from 250p as it said the market was likely to "look for proof of improvement".
"There remains significant medium term potential at Morgan Advanced, in our view, and a December strategy event should highlight some of the opportunity with the strategic vision of new CEO Damien Caby," RBC said. "However, the tough trading highlighted in the October profit warning provides a lower run rate of profitability into 2026."
The Canadian bank expects 2026 EBITA to decline year-on-year to a level around 35% below 2022 delivery.
"In this context we expect the market to adopt more of a 'show me' attitude to the share from here and as such downgrade to sector perform," it said.
Analysts at Berenberg slightly raised their target price on drugmaker GSK from £16 to £16.60 per share on Tuesday after it hosted chief financial officer Julie Brown for the eighth session of its annual pharma CFO series.
Berenberg stated as CFO in 2026, Brown will be focusing on delivering the financial ambition for the business, with its Blenrep and depemokimab assets being "key commercial drivers" that it believes to be "underappreciated by the market".
The German bank stated the launch of both drugs will be "a key focus for investors into 2026", and said it forecasts 5% total revenue growth, an operating margin of 31% and 8% earnings per share growth in FY26.
"We retain our 'hold' recommendation and raise our price target to GBP16.60, reflecting recent financial performance," said Berenberg.
"GSK trades on 10.3x 2026 adjusted earnings versus European peers on 13.7x. On EV/NPV, GSK trades c12% below European peers (0.80x versus 0.91x) and c21% below the value of marketed assets alone."
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