Broker tips: Hilton Food, Kistos, Admiral, Energean

(Sharecast News) - Analysts at Berenberg lifted their target price on Hilton Food Group to 810p from 790p on Monday, after the food producer delivered betterthanexpected interim results and struck a more confident tone in its second-half outlook.

Berenberg said Hilton had emerged from a difficult 12month period with a stronger H1 performance and improving momentum across key divisions amd upgraded its FY26 and FY27 earnings forecasts by 11% and 5%, respectively, noting the shares trade on what it called an undemanding valuation of around 13x FY26 earnings and a 5% dividend yield.

Hilton posted a 11.5% rise in continuing revenue to £2.29bn in the first half, ahead of consensus, while adjusted operating profits slipped 3.4% to £45.8m and adjusted earnings per share fell 9.2% to 25.7p. However, free cash flow improved markedly to £10.4m from a £30.8m outflow a year earlier and net debt also fell yearonyear.

Berenberg said core meat and fresh prepared foods traded well, Seachill was set for a stronger H2 as costcutting takes hold, but Foppen remained a drag.

The German bank said the UK outlook for H2 looked encouraging, with strong promotional activity heading into Christmas, while Canada offered a sizeable rampup opportunity with Walmart. Australia continued to perform well despite inflation pressures.

However, Berenberg warned that Foppen remained lossmaking and subject to US FDA regulatory approval tied to its Greek facility, leaving limited visibility on timing.

Canaccord Genuity initiated coverage of Kistos with a 'buy' rating and a 360p price target on Monday, saying the AIMlisted oil and gas group was set for a stepchange in scale once its acquisition of Omani production completes later this year.

The Canadian bank said Kistos had rapidly evolved from a startup into a diversified international producer with assets across the Netherlands, UK, Norway and soon Oman, supported by an experienced management team from RockRose Energy. It added that the shares looked "cheap", trading on an FY26 enterprise value-to-underlying earnings multiple of around 1.4x.

Canaccord Genuity described the Oman transaction as "transformative", with completion expected in Q326, and highlighted that the deal was forecast to double group output to more than 20,000 barrels of oil per day on a proforma basis, while also significantly diversifying production away from the North Sea. Postcompletion, Oman was expected to account for roughly half of Kistos' production and a large share of its reserves and resources, with lighter capex requirements than its existing portfolio.

The broker said Kistos still saw growth potential in its current assets, including the Balder Next development in Norway and new drilling options in the UK, which could sustain production well into the next decade. It also highlighted plans to expand UK gasstorage capacity by up to 60%, calling the midstream asset strategically important and undervalued by the market.

Canaccord noted Kistos' recent $300m Nordic bond issue had strengthened the balance sheet and pointed to "meaningful deleveraging potential", with net debt projected to fall from around $200m postOman to roughly $115m by FY28. It also said the company could move into a netcash position before the end of the decade.

Morgan Stanley upgraded Admiral to 'overweight' from 'underweight' as it said recent share price weakness provided a more attractive entry point, while the valuation remains below historical averages and leaves room for further re-rating given the improving backdrop.

The bank, which upped its price target on Admiral to 4,450p from 3,575p, said UK motor was now one of the more attractive pricing pockets in European insurance as other areas remain under pressure.

Morgan Stanley noted that motor insurance CPI has accelerated to 8% growth year-on-year, while other pricing measures were beginning to follow. It said Admiral was the best way to play this theme with 90% of its business exposed to UK motor.

"Admiral is now rebuilding margins, not just maintaining them, with high single digit percentage rate increases at H1 well ahead of claims inflation," it said. "Automated vehicles remain a long-term risk, but recent L3 and Waymo developments highlight the uncertain path towards adoption."

Morgan Stanley said that trading at around 14.5x estimated 2027 price-to-earnings, Admiral remains below its 10-year average despite improving motor fundamentals.

Jefferies upgraded Energean to 'hold' from 'underperform' and lifted its price target on the stock to 800p from 680p.

The bank said it sees the risk/reward more reasonably priced in after stock weakness year to date.

"We upgrade to hold (from U/P) with price target +17% to 800p benefitting from revised commodity prices, updated tax model assumptions supportive to NAV, Katlan development closer to completion and regional sector M&A interest," it said. 'While our YE26e net debt estimate is higher than company guidance, overall valuation is now pricing in that dynamic, in our view."