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Broker tips: Applied Nutrition, Lancashire Holdings
By Iain Gilbert
Date: Thursday 06 Nov 2025
(Sharecast News) - Analysts at Berenberg initiated coverage on sports nutrition business Applied Nutrition with a 'buy' rating and 215p target price on Thursday, stating the firm was "primed for growth".
Berenberg said it likes Applied Nutrition for its combination of early-stage global growth potential, while already delivering best-in-class margins and strong cash conversion.
The German bank said the global sports nutrition, health and wellness market was forecast by Euromonitor to grow by an 8.1% compound annual growth rate to reach £280bn by 2028. It noted that Applied Nutrition has a sub-0.1% share of the global market, highlighting the long-term growth potential.
Berenberg expects Applied Nutrition to grow its revenue from £86.2m to £107m by FY27, representing a 15.6% CAGR. It said the group's business-to-business and distributor-led model enable it to enter new regions quickly and at a low cost, driving its global expansion.
"Our 215p price target, represents c25% upside, and is based on our three-stage DCF analysis. It implies an FY 2026E P/E of 21.2x for a three-year EPS CAGR of 11.4%. Our forecasts are prudently set, in our view, with material upside as APN continues to unlock its global growth potential," said Berenberg.
Over at Canaccord Genuity, analysts hiked their target price on insurance firm Lancashire Holdings from 600p to 625p on Thursday following the company's "good" third-quarter earnings.
Canaccord Genuity said Lancashire's Q3 special dividend was in-line with its forecasts and noted that management had "talked constructively" about opportunities for growth into 2026, good underlying margins, and prospects for capital return going forward.
The Canadian bank also estimates a low 70s combined ratio in Q3, which it said was likely to compare well with peers as they report.
"We raise FY25E EPS for this performance, leaving out-year forecasts broadly unchanged. We see 2026 as a transition year but are more cautious on volume and margins into 2027," said Canaccord, which reiterated its 'underperform' rating on the stock.
"Our cautious view on the stock relates to the medium-term outlook for returns as competition increases, and the relatively high P/B multiple against history and better diversified London Market peers, and, in particular, much more lowly valued Bermudian peers (trading between 0.9x and 1.5x FY25E P/Bs)."
Reporting by Iain Gilbert at Sharecast.com
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