Broker tips: SSP, Johnson Matthey, Rolls-Royce

(Sharecast News) - Analysts at Berenberg nudged their price target on food and beverage outlets operator SSP down to 230p from 245p, but kept their 'buy' rating on the stock, saying the firm's core value was becoming clearer as operational delivery improves and strategic actions begin to take hold.

Berenberg said SSP had delivered peerleading likeforlike growth this year, helped by the strength of its M&S estate, commercial initiatives, its fully foodandbeveragefocused model and a predominantly domestic footprint. It expects these drivers to support a solid fourth quarter performance, with reiterated freecashflow guidance keeping the door open for further shareholder returns.

The German bank highlighted a Q3 beat, with 4% like-for-like growth accelerating through the quarter on sustained UK momentum and better trading in Europe. Middle East trends also stabilised, with Gulf markets improving from 41% LFL at the start of Q3 to 31% later in the period. SSP reiterated guidance for FY26 EPS and �100m+ free cash flow, which Berenberg said underlined structurally stronger cash conversion and kept a potential FY27 buyback in play.

Berenberg also said SSP's plan to exit lossmaking motorway and rail units in Continental Europe by FY28 should lift regional margins above 5%, simplify the investment case and drive around �16m of incremental underlying earnings. It also pointed to the value in SSP's India business, Travel Food Services, now valued at �667m, arguing that SSP's exIndia valuation was not currently reflected in the share price.

Berenberg added that SSP can still deliver midsingledigit organic growth and margin improvement even after deconsolidating India, supporting longterm value creation.

Johnson Matthey rallied on Tuesday after Jefferies reinstated coverage of the shares with a 'buy' rating and 2,330p target price following full-year results and its recent Cormetech acquisition.

Jefferies said that with the sale of the Catalyst Technologies business completed and returns calendar confirmed, the story now turns to JM's own delivery rather than deal risk or macro-led sentiment. It also said completion of the CT sale removes the last disposal risk from the cash story, with de-leveraging on track.

"Practically, this means the shareholder returns are now comfortably funded and calendar-certain," it said. "The capital allocation story now leans heavily on a self-funded free cash flow ramp (guide more than �250m by 27/28, Jefferies estimate more than �300m on average from FY28) rather than regulatory-dependent proceeds or macro-dependent sentiments.

Jefferies stated the margin bridge in Clean Air remains the core of the case, with management's own path working towards a 16% to 18% FY28 ambition, delivered through overhead reduction, footprint consolidation and commercial mix, regardless of regulation backdrop.

"In the meantime, the heavy-duty skew (more than 1/3 of the autocatalysis business consistently) is where the regulatory plus-one shows up," Jefferies said.

JPMorgan lifted its price target on Rolls-Royce on Tuesday to 1,800p from 1,625p and maintained its 'overweight' rating on the stock, noting that the company's first-half results were meaningfully ahead of the consensus estimates and that it had significantly raised its 2026 guidance for underlying earnings and free cash flow.

"This was the ninth consecutive 'beat and raise' from RR since the FY23 results," JPM said. "In our view, this was arguably the most impressive of the nine beats for two reasons. First, it is much harder to beat off a high base than a low base. Second, all three divisions significantly beat expectations and now have a higher earnings outlook."

JPM increased its 2026-30 estimated earnings per share by 19% / 14% / 13% / 13% / 14% and said the new target price implies around 20% potential upside over the next 17 months.