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(Sharecast News) - Berenberg slashed its price target on Hilton Food on Thursday to 790p from 1,090p as it lowered forecasts after the company downgraded its full-year profit guidance earlier in the week.
The bank noted that the new guidance for adjusted pre-tax profit of 72m to 75m is 3% lower than Visible Alpha consensus at the midpoint.
"Management also flagged that it expects profit progression to be more difficult in FY 2026E, in which consensus had projected growth in adjusted profit before tax of 5% year-on-year," it said.
Changes to Berenberg's forecasts resulted in downgrades to adjusted PBT by 15% and 14% in FY 2025E and FY 2026E respectively.
"We value Hilton using a DCF valuation methodology," it noted. "Hilton currently trades on 9x 12-month forward P/E, being more than one standard deviation below its long-run historical average."
Berenberg maintained its 'buy' rating on the shares.
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