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(Sharecast News) - Deutsche Bank cut its price target on Genuit on Wednesday to 400p from 440p after it warned a day earlier that full-year profits would miss market expectations amid ongoing challenging market conditions.
"Genuit reports that challenging market conditions have persisted and have most notably worsened in its heating business," DB said. "Against this backdrop, management is now guiding to FY26 EBIT of circa £84m, which is 7% below our estimate (c.£91m) and 11% below Bloomberg consensus (c.£94m)," the bank said.
Deutsche cut its FY26 EBIT estimate by 9% to slightly below guidance. It also added some caution in relation to FY27, which results in a 13% reduction to its EBIT forecast.
"Genuit trades on a CY27 P/E ratio of circa 14x (long-run average: circa 14x) and dividend yield of more than 4%," DB said.
It said that while conditions remain challenging, it continues to believe that Genuit is well placed to benefit from a macro recovery over the medium term, augmented by regulatory drivers.
DB rates Genuit at 'buy'.
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