Magnum Ice Cream Shares Unlikely to Outperform, Analyst Stays Cautious

Magnum Ice Cream’s (LON: MICC) shares have risen about 2.9 percent over the past month, but Jefferies has taken a cautious stance as it initiated coverage of the stock with a Hold rating and a price target of €13.60.

The broker said the shares have performed steadily since listing but warned that further outperformance looks unlikely in the near term. 

In the note, Jefferies wrote that “MICC NA has held up well since listing, but we think it is unlikely to outperform from here for now,” adding that downside risk appears limited given the valuation sits at around 13 times next-twelve-month earnings.

Jefferies believes that a key hurdle for the company is proving it can deliver sustained volume and mix growth of 1 to 2 percent, which it sees as necessary for the shares to move meaningfully higher. 

The firm argued that achieving this will take time, pointing to stepped-up pricing outside Europe in the second half of 2025 and a challenging weather comparison expected in the first half of 2026.

“Until then, we see opaqueness on earnings and cash progression. Start with a Hold,” the note said.

Other banks have also taken measured views in recent weeks. Deutsche Bank initiated at Hold in December, citing the highly seasonal nature of the category, while Goldman Sachs began with a Neutral amid limited catalysts for 2026. 

Morgan Stanley has been more optimistic, starting at Overweight and calling the valuation overly discounted.