Broker tips: B&M, Atalaya Mining
By Iain Gilbert
Date: Wednesday 22 Oct 2025
(Sharecast News) - Analysts at Canaccord Genuity slashed their target price on budget retailer B&M European Value Retail from 395p to 245p on Wednesday following the second downgrade to profit guidance in just two weeks.
B&M's second guidance revision comes after an internal system error failed to recognise overseas freight costs in its income statement, and whilst Canaccord Genuity continues to believe in the strength of the firm's underlying customer proposition and opportunities for further growth both in the UK and Europe, it also acknowledged that this latest setback was "a further blow to credibility".
The Canadian bank said the latest revised guidance implied a 16-24% year-on-year reduction from the £620m achieved in FY25, and a roughly 7% reduction compared to the previous guidance based on the mid-point of the range. As a result, Canaccord Genuity reduced its FY26 adjusted underlying earnings forecasts by 8% to £475m, representing an approximately 23% year-on-year decline, with its revised forecast prudently remaining towards the lower end of the range.
"Clearly this latest profit guidance reduction is disappointing, more so given it relates to an internal system error. On our revised forecasts, B&M trades on an FY26E PER of 8.1x. Whilst we continue to believe this offers good value both in the context of the long-term average FY1 PER multiple of c.15x, but also given the significant long-term expansion potential both in the UK and Europe, we acknowledge that it will take time for market credibility to be restored," said Canaccord.
"We hope that further detail on the Back to B&M Basics turnaround plan at the interims in November will be the start of this process. Our target price reduces to 245p from 395p based on a CY26E target PER of c.10x (a c.5% sector discount & c.33% discount to the LTM avg.)."
Over at Berenberg, analysts slightly nudged up their target price on copper miner Atalaya Mining from 620p to 630p on Wednesday, stating there were "no surprises" in the company's third-quarter results.
Berenberg update its model for Atalaya Mining following its Q3 2025 operations update, released on 21 October, which revealed copper production from Proyecto Riotinto in Spain was broadly stable, while sales volumes were ahead of its forecast, driving a net cash beat.
Guidance for 2025 production and unit costs were maintained, and following its update, Berenberg now sits at 51.2 kilotonnes of copper at an all-in sustaining cost of $3.18 per pound.
The German bank, which has a 'hold' rating on the stock, noted that Atalaya's shares closed down 3.6% following the results amid a broader sector sell-off.
"We update our model for the Q3 results and marginally increase our throughput forecasts," said Berenberg. "The shares are currently trading on 1.19x NAV and 4.4x 2026E EBITDA."
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN