Broker tips: Senior, Genus, GB Group

(Sharecast News) - Jefferies has raised its target price for Senior from 185p to 230p on Wednesday despite the recent pullback in the stock following last week's trading update, predicting further upside from current prices.

Senior, which makes high technology components and systems, said last Thursday that its full-year performance was set to be "comfortably above" its previous expectations. Constant-currency revenues rose 5.9% year-on-year over the first 10 months of 2025, with Aerospace sales increasing 9.4% and Flexonics growing by 1.5%.

Growth in the aerospace segment was put down to increasing production rates of commercial aircraft, higher defence spending and improved pricing, which Senior expects to continue for the full year and beyond. However, while Flexonics' full-year results are now tipped to be slightly ahead of 2024, the land vehicle end-market has softened in the second half and is expected to remain weak in 2026, leading to a sharp fall in the shares over recent days.

"Senior's equity story continues to appeal, in our view, and while FY25F consensus moved higher post the 10m update, FY26F consensus moved lower on Flexonics weakness," said Jefferies, which reiterated its 'buy' rating on the stock.

"Importantly, the Aerospace division is performing better-than-expected, and there continues to be a positive outlook and significant improvement potential, in our view. There is still plenty to come from Senior."

Analysts at Berenberg initiated coverage on genetics firm Genus with a 'buy' rating and a 3,050p target price on Wednesday, stating the "long-term underlying dynamics" of the business "look attractive".

Berenberg said the combination of rising population growth and increasing urbanisation, most notably in developing markets, had created "a substantial increase in demand" for protein in recent years, which it thinks looks set to continue.

"With Genus focused on increasing the productivity and efficiency with which this protein is produced, the long-term drivers underpinning the business model look strong," said Berenberg, which also noted that Genus looked "well positioned to benefit" from the consolidation and professionalisation of the farming industry.

The German bank also believed that China represents "a substantial medium-term opportunity" for Genus, given the current low level of genetic sophistication in the country's farming industry.

Berenberg added that Genus' "potentially transformative" gene editing technology offers "significant medium term upside" beyond its current estimates, in our view.

"Genus trades at 18.4x 2027E EV/EBIT and 23.1x P/E. We value Genus using a DCF for the core business, before adding a discounted and probability-weighted valuation of the company's gene editing programme," said Berenberg.

Shore Capital has reiterated its 'buy' rating for GB Group after the identity verification specialist's interim results this week, saying the company's progress was "going to plan".

On Tuesday, GB Group reported a 1.8% rise in first-half revenue on a constant-currency basis, and said it remained confident of accelerating growth in the second half. It also posted a 4.6% increase in adjusted earnings before interest and tax, improvements in cash conversion and an additional �10m share buyback programme.

Shore Capital highlighted three key areas of improvement at GB Group - strong momentum in new business wins, increased margins following a long period of margin erosion, and the expected return to growth in the Americas business, where new business was up four times compared with last year.

"The go-to-market, customer success and data science teams have all been strengthened, new leadership has been put in place, and we also note the consolidation of the Identity and Location sales teams to enhance cross-sell opportunities," said Shore Capital. "Progress is improving, but we want to see this segment return to faster-than-group performance. If and when this happens, we think it would be a key driver of a share price re-rating."

The broker's fair value estimate for GB Group's shares was 390p, which equates to an enterprise value/sales ratio of 3.6x and a price-to-earnings ratio of 21.0x - around a 30% discount to the stock's long-term average.