Elementis Shares (ELM) Make New High: Analyst Raises Target, Citing Transformation

Elementis shares (LON:ELM) hit a fresh multi-year high this morning, opening up at 179.60p, before pulling back alongside broader markets. The company is enjoying a surge in investor confidence however, helped along by a price target increase from Jefferies and a strong recent H1 earnings report. 

Shares in Elementis are currently trading at 173.60p, marking a solid 8% gain over the past month. This upward trajectory builds on strong gains since the start of the year, with ELM up 21.4%. 

Jefferies' recent decision to raise its price target to 200p from 190p, while maintaining a “Buy” rating, has further supported the bullish sentiment. The firm highlighted Elementis's impressive financial results and an updated strategy that underscores the substantial upside potential of the “new” Elementis.

In a research note, Jefferies analysts stated their belief that the company's ongoing transformation remains underappreciated and have consequently raised their forecasts for the company.

This endorsement follows similar upgrades from other financial institutions, including Barclays, Deutsche Bank, and Berenberg Bank, signaling a broad consensus among analysts about Elementis's improving outlook.

Elementis has been actively reshaping its business through strategic initiatives. A key development was the sale of its Talc business to IMI Fabi for $121 million in late May 2025. This divestiture was accompanied by the announcement of a £50 million share buyback program, a move that was well-received by the market.

The company's recent financial performance provides further justification for the positive outlook. H1 revenue of $308M, whilst down 1% on the previous year, came alongside guidance for the FY that was 4% above estimates.

Bull Case: