Broker tips: Wilmington, On the Beach, Kainos
By Iain Gilbert
Date: Monday 08 Dec 2025
(Sharecast News) - Canaccord Genuity bumped up its target price on publishing firm Wilmington from 450p to 475p on Monday, following the completion of the group's £105m Conversia acquisition.
The Candian bank updated its model to reflect the roughly seven-month contribution of the Spanish regulatory technology business in 2026, and full-year contribution thereafter, modeling earnings accretion of 18% in FY27. Across its forecast period, Canaccord Genuity expects earnings to expand roughly 20%.
"We reiterate our view that Conversia is an attractive asset, adding a market leading RegTech platform to the group with high retention rates, recurring revenues and favourable profit and cash generation profiles," said the Canaccord Genuity, which reiterated its 'buy' rating on the stock.
"All in, with the FRA sale process in motion (we now present as non-core), we believe Wilmington is creating a stronger, digital-first portfolio of "must-have" GRC assets, underpinning our expectations for double-digit growth and margin expansion across the forecast period."
Analysts at Berenberg raised their target price on travel retailer On the Beach from 300p to 330p on Monday following the group's full-year results on 2 December.
Berenberg noted that On the Beach's FY25 results had "calmed the market" on the company's outlook, with summer 2026 bookings building momentum and supporting an outlook in line with expectations.
"While the company has a lot to do to reach its medium-term ambition, the business is performing well, both in its core beach business and city breaks and in the Republic of Ireland, and it is continuing to outgrow the market and deliver robust shareholder returns," said Berenberg, which reiterated its 'buy' rating on the stock.
The German bank added that on multiples, On the Beach trades on 10.1x/8.1x its FY26/27 estimates.
Kainos surged on Monday after Bank of America upgraded the shares to 'buy' from 'underperform' and hiked its price target on the stock to 1,290p from 960p.
Bank of America reckons that better growth momentum can help drive a further re-rating for the IT services provider, it also said it sees a sustainable return to strong topline growth over the mid-term, helped by a record backlog and robust bookings momentum.
BofA stated that this was driven by UK contract wins, a return to growth in Workday Services, and strong annual recurring revenue growth in Workday Products.
"We believe its unique positioning, strong growth and increasing revenue share of software products should drive a further re-rating," said BofA.
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