PZ Cussons Shares Near Multi-Year Lows – Analyst Says Sentiment Is Turning

PZ Cussons (LON: PZC) shares closed Thursday at 74.7p, leaving the stock more than 72% below its 2021 levels, and still close to its multi-year lows.

But after years of change, analysts at Edison say the company is finally showing signs of a sustainable turnaround, and that investor sentiment is beginning to shift.

In a new report, Edison argues that PZ Cussons is “demonstrating the benefits of sharper operational focus and improved execution.”

The group has laid out an ambition to deliver mid–single-digit annual revenue growth and high–single-digit earnings growth, which, alongside its 3.6p dividend, would equate to a double-digit total shareholder return.

Edison notes that the transformation from “an opportunistic owner of assets into a brand builder” marks the most important strategic shift.

The company’s portfolio of “locally loved” personal care and homecare brands, such as Carex, Imperial Leather and Premier, is now backed by a clear plan to increase innovation.

Management expects 2027 R&D spending to be double 2025 levels, with a far greater emphasis on new product development.

The balance sheet, hit by Nigeria’s naira devaluation in 2023, has also been repaired through disposals and stronger cash generation. Consensus forecasts show net debt-to-EBITDA falling to just 0.3 times in FY26.

While the stock still trades on modest earnings multiples, Edison believes the recovery is gaining momentum. With EPS expected to grow 13% in FY27 and the company now “on the right track,” analysts argue the long-depressed valuation may be starting to attract renewed interest from investors.