Canaccord Genuity hikes target price for MP Evans
By Benjamin Chiou
Date: Tuesday 16 Sep 2025
(Sharecast News) - Canaccord Genuity has hiked its target price for palm oil group MP Evans after the AIM-listed firm's positive first-half results on Monday, 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 Indonesia 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," Canaccord Genuity said in a research note.
"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.
Canaccord Genuity kept a 'buy' rating on the stock and lifted its target price for the shares from 1,500p to 1,650p.
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.
Shares were down 1.1% at 1,315p by 1139 BST, having risen more than 5% over the preceding two sessions.
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