- Strix Group
- 27 August 2025 11:48:35
Source: Sharecast
Berenberg said it was looking for equity stories where stock-specific factors can support better investor returns, leading it to launch coverage of three stocks where there has been a change in recent periods that could provide inflexion points to both the businesses and their respective share price.
Berenberg started Strix with a 'buy' rating and a 90p target price, arguing that the market was undervaluing the group's resilient fundamentals and cash-generative profile. It said Strix trades at just a 5.9x FY25 price-to-earnings ratio — despite sector-leading underlying margins of 18% and near-100% cash conversion. It also believes investors have been overly focused on transitory headwinds, including the slowing performance of its Billi acquisition, stagnation in its controls division, and a legacy debt pile.
The German bank also sees scope for buybacks given the depressed share price, but notes that management's track record in acquisitions supports a longer-term growth strategy. With a forecast free cash flow yield of 16.9% in FY26, Berenberg considers Strix a compelling re-entry point for investors.
Berenberg also picked up coverage of Trifast with a 'buy' rating and a 130p price target, with the analysts highlighting the company's multi-year turnaround under new management and stating that it sees further upside from operational improvements and self-help initiatives, while Zotefoams was also started at 'buy' with a 540p price target, citing a strategic pivot under new chief executive Ronan Cox and a materially undervalued growth opportunity.
Reporting by Iain Gilbert at Sharecast.com