- Hilton Food Group
- 04 September 2025 14:31:48
Source: Sharecast
The broker trimmed its target price from 1,050p to 750p and kept a 'sector perform' rating on the stock.
HFG's share price plunged 17% on Wednesday after the company reported that softness in its seafood division – driven by "significant" raw material inflation – weighed on figures for the six months to 29 June, with statutory profit before tax (PBT) down 4.7% year-on-year.
As a result, RBC said it has cut its EBIT forecasts for HFG over the next three years. For 2025, its adjusted PBT now sits at just £73m, below company guidance of £77m-81m.
"Additionally, we think elevated seafood prices will limit both the pace of volume recovery and premiumisation - especially considering the currently depressed consumer backdrop," RBC said.
Looking ahead, the broker was somewhat upbeat, expecting HFP's volume growth to turn positive in 2027. It highlighted the company's international expansion, but said that higher investments in both capacity and working capital could limit earnings growth.
Using RBC's new estimates, the stock trades at an 2026 EV/NOPAT valuation multiple of 8x, which it sees as a "fair" discount to sector peers Cranswick (17x) and Premier Foods (12x).