Broker tips: C&C Group, Conduit Holdings
By Iain Gilbert
Date: Thursday 29 Jan 2026
(Sharecast News) - Analysts at RBC Capital Markets lowered their target price on alcoholic drinks manufacturer C&C Group from 160p to 130p on Thursday, stating headwinds had delayed the firm's recovery.
RBC Capital noted that C&C's recovery timeline has now extended, with FY26/27 now seen as transition years as management restructures operations.
However, the Canadian bank said C&C's strategic exit from its low-margin distribution business should enhance portfolio quality, while its branded division's leading regional market positions and its €150m shareholder return program offer downside support.
"We believe management's strategic update in May will be critical for establishing a F2028E+ growth pathway," said RBC, which has a 'sector perform' rating on the stock. "Our revised forecasts align with management's €70-73m operating profit guidance, reducing our price target to £1.30."
Berenberg reiterated its 'buy' rating on multi-line reinsurer Conduit Holdings on Thursday, stating the group's was a bneficiary of Bermuda's new Tax Credit Act.
On 11 December, Bermuda enacted the Tax Credit Act 2025, which offers incentives for insurers and reinsurers based on the island, providing a part offset to the 15% corporate income tax, which was introduced on 1 January 2025.
Berenberg said that while Conduit Re remains exempt from corporate income tax, as all of its activities are conducted in Bermuda, it now forecasts that the company will also benefit from the Tax Credit Act.
"We believe that this benefit will further reduce Conduit's already low level of other operating expenses and, as a result, we raise our FY25E earnings forecast by $5m, or 6%, to $90m," said the German bank, which has a 700p target price for the stock.
Berenberg added that, based on Bloomberg consensus, Conduit trades on 0.6x FY27 price/book ratio and offers an 11.7% FY27 return on equity.
"We believe that this is a compelling valuation given that Conduit has a strong balance sheet with no debt and its 1.6x covered dividend offers an attractive 6.9% yield."
Reporting by Iain Gilbert at Sharecast.com
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