Broker tips: Alfa Financial Software, Hilton Food, Eurocell, Jet2
By Iain Gilbert
Date: Thursday 04 Sep 2025
(Sharecast News) - Alfa Financial Software's share price jumped on Thursday after the asset finance tech company impressed with "exceptionally strong" interim results, according to Shore Capital.
In line with a recent trading update, the group delivered 22% organic revenue growth in the first half, compared with Shore Capital's full-year forecast of 13%, which implies a slowdown to just 7% in the second half. First-half earnings before interest and tax (EBIT) growth of 33% was also tracking ahead of the broker's current full-year estimates.
"While H2 will be impacted by FX headwinds, higher opex and a possible skew towards lower margin revenue lines (software engineering performance unlikely to be repeated), we continue to see upside risk to our top-of-the-range EBIT estimate," Shore Capital said in a research note.
The broker kept a 'buy' rating on the stock, saying it remains a "top pick" with a fair value estimate of 270p, compared with Thursday afternoon's price of 231.5p - up 6.4% on the day.
Regarding Alfa's valuation, the stock continues to trade at a modest premium to historical averages on multiple measures, but Shore Capital reckons "this can be supported by the growth acceleration, improving forecast visibility, and increasing scale".
RBC Capital Markets has slashed its target price for Hilton Food Group by nearly 30% after cutting its medium-term targets following the food packaging company's mixed first-half results.
The broker trimmed its target price from 1,050p to 750p and kept a 'sector perform' rating on the stock.
HFG's share price plunged 17% on Wednesday after the company reported that softness in its seafood division - driven by "significant" raw material inflation - weighed on figures for the six months to 29 June, with statutory profit before tax (PBT) down 4.7% year-on-year.
As a result, RBC said it has cut its EBIT forecasts for HFG over the next three years. For 2025, its adjusted PBT now sits at just £73m, below company guidance of £77m-81m.
"Additionally, we think elevated seafood prices will limit both the pace of volume recovery and premiumisation - especially considering the currently depressed consumer backdrop," RBC said.
Looking ahead, the broker was somewhat upbeat, expecting HFP's volume growth to turn positive in 2027. It highlighted the company's international expansion, but said that higher investments in both capacity and working capital could limit earnings growth.
Using RBC's new estimates, the stock trades at an 2026 EV/NOPAT valuation multiple of 8x, which it sees as a "fair" discount to sector peers Cranswick (17x) and Premier Foods (12x).
Analysts at Berenberg lowered their target price on building materials supplier Eurocell from 300p to 270p on Thursday after the group's interim results revealed that subdued end-markets had continued.
The German bank noted that overall revenue showed some 10% growth year-on-year, primarily on the back of its Alunet acquisition, and adjusted underlying earnings had grown by 9% to £10.1m.
However, Berenberg noted that Eurocell management continues to highlight the subdued broader trading conditions in UK end-markets, as well as continuing macro uncertainty. As such, it indicated that it now views the FY25 outlook as being below its previous expectations.
"We update our numbers for these results, with our adjusted EBITDA numbers falling by 5-8% across the forecast period, although by more further down the income statement," said Berenberg, which kept its 'buy' rating on the stock.
"We would highlight that these subdued market conditions have been flagged by several peers in the space in recent weeks and that delivering on our updated numbers would still result in the business ultimately delivering flat organic revenues, gross margins and overheads in FY25 against a tough backdrop."
Berenberg added that Eurocell currently trades on a 9.4x FY25 price-to-earnings ratio, 4.4x EBITDA and 9.5x EBIT.
Canaccord Genuity cut its price target on Jet2 on Thursday to 2,250p from 2,325p after the company warned that full-year underlying earnings were set to be towards the lower end of the consensus range and reduced its winter capacity.
Shares in Jet2 tumbled after the update, but Canaccord said it sees potential to buy into share weakness.
"We think Jet2 remains invested in quality and possesses excellent (customer-rated) product, high repeat custom, highly rated service; limited long-term fixed costs and strong flexibility; low risk of stranded capital; and balance sheet strength and minimal net debt," it said.
Canaccord Genuity reckons this positions Jet2 to grasp opportunities and to build stronger compounding profit returns for the future.
"In our view, Jet2's balance sheet strength is critical here - and leaves it with options to exploit that few can match," said Canaccord. "At circa 7x PER and circa 16% equity free cash flow yield, this leaves a sizeable value gap for shareholders to benefit from."
Canaccord said it values Jet2 using a weighted scenarios-based analysis based on historic peer multiples to deliver its new 2,250p target price.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN