Jefferies Sees “Green Shoots” at Essentra, Raises Price Target Amid Recovery Hopes

Essentra plc (LON:ESNT) edged higher in Thursday's session, up 0.8% to 103p, after Jefferies reiterated a “Buy” rating and increased its price target for the stock to 170p, up from 160p.

Despite the positives, Essentra shares opened lower on Friday. However, they are now flat on the day at 103p per share.

Analyst Outlook: “Green Shoots” Emerge

Jefferies' positive outlook hinges on what they describe as “some green shoots” emerging within the company, suggesting a strong recovery potential.

This assessment aligns with the broader analyst consensus, which currently rates Essentra as a “Buy,” anticipating further upside despite recent underperformance.

The consensus analyst price target sits at 206.5p, indicating significant potential gains from the current price level.

The bullish rating and increased share price target are also said to reflect Essentra’s recent financial performance and strategic management.

The firm believes that, although the trading environment across different regions has been challenging, Essentra has managed costs and cash flow effectively, while also making strategic investments and implementing price increases.

First-Half 2025 Financials

Essentra’s first-half 2025 financial results, released on July 29, revealed a mixed performance. Revenue stood at £152.4 million, a 1.1% decrease on a constant currency basis and a 4.6% decline on a reported basis. Adjusted operating profit was £16.5 million, down 19.8% year-on-year, resulting in an adjusted operating margin of 10.8%, a decrease of 250 basis points.

Regionally, EMEA saw a 4.5% decline in like-for-like revenue, while the Americas returned to growth with a 0.7% increase, and APAC achieved a 9.5% increase driven by strong demand from China.

Despite these challenges, Essentra maintained its full-year outlook, anticipating margin improvements in the second half of the year, driven by operational initiatives and enhanced pricing strategies.