Broker tips: Ashmore, Fevertree Drinks, Rio Tinto, Rentokil
By Iain Gilbert
Date: Tuesday 24 Feb 2026
(Sharecast News) - Jefferies upgraded Ashmore to 'buy' from 'hold' on Tuesday and hiked the price target to 285p from 170p as it cited an attractive risk/reward and said that Q4 2025 marked a turning point in the emerging markets cycle.
It noted that Ashmore delivered a $2.6bn increase of net new money, with about 50% of gross inflows coming from new mandates as institutions rebuild their strategic EM exposure.
"The EM flow cycle typically accelerates once it turns," Jefferies said. "Despite the recent rally, Ashmore shares trade below 2016 levels when, from a similar AUM base, it subsequently added circa $20bn of NNM, and its stock doubled."
The broker said the current valuation still embeds only a modest recovery relative to that period, despite a stronger revenue mix, substantial surplus capital and the scarcity value of a scaled EM specialist.
"If momentum persists and flows begin to broaden beyond institution‑led mandates, we think there remains meaningful potential for further re‑rating," it said.
Analysts at RBC Capital Markets raised their target price on mixers business Fevertree Drinks from 900p to 1,030p on Tuesday as the group's US partnership with Molson Coors continued to build.
RBC Capital said it sees Fevertree's stronger FY27 story building through 2026, with the Molson Coors partnership set to provide "guaranteed profitshares" to 2030 and onshore production from 2027 unlocking structural cost benefits.
The Canadian bank did note that near-term US profitability "remains compressed" by elevated marketing investment to support stronger US brand positioning. However, it also said UK stabilisation, rest of world strength, and Fevertree's debtfree, cash-generative model all serve to provide diversification and support for its more medium-term thesis.
"We rebased our valuation to 2026E which results in a £10.30 PT (9% WACC; 2.5% TG) from £9.00. This reflects a 2026E EV/adj.EBITDA multiple of 21.3x, below FEVR's 10yr avg of ~28.3x but just ahead of its 4yr avg of ~20.3x," said RBC Capital, which has a 'sector perform' rating on the stock.
"Since the MC partnership announcement, FEVR's multiple has recovered while peers traded flat-to-down, reflecting market recognition of the transformational opportunity in the MC Partnership announcement despite broader consumer headwinds."
Barclays downgraded Rio Tinto on Tuesday to 'equalweight' from 'overweight' and cut its price target on the stock to 6,600p from 6,885p, citing a number of near-term headwinds.
Barclays said it believes iron ore prices were currently close to the peak of seasonality, which typically sees prices progressively decline until Q4, implying Rio's earnings momentum is likely to wane from here. It also said that Rio has significantly outperformed key peer BHP since the start of Q4.
"While Rio still trades at a discount to BHP on price-to-earnings and free cash flow yield, it is now at parity on EV/EBITDA as a result of the recent rally, leaving Rio at the tightest valuation discount to BHP seen since 2020 on EV/EBITDA," it said.
The bank also said it believes the strategic challenge that Rio's approach to Glencore highlighted - a lack of copper growth options post 2030 - is one that is not easily solved other than via M&A.
Barclays said the potential catalyst of $5bn-10bn of asset sales was likely to take time, while the targeted NPV lift from value release was insufficient to offer material upside to its valuation.
"With modest 8% downside to our downwardly revised price target of 6600p following FY25 results, we cut Rio from OW to EW and prefer Anglo American and Glencore which remain our key ideas in the sector," it said.
Deutsche Bank downgraded Rentokil on Tuesday to 'hold' from 'buy' and cut its price target on the stock to 465p from 505p.
The German bank said Rentokil iswasa global market leader in an attractive and defensive category, and iswasa business that it thinks should deliver growth at least in-line with the industry and a margin profile that befits a market leader in the space.
"Our analysis shows Rentokil's Pest Control category is significantly under-earning compared to the leading international peers," Deutsche said. "We await more detail from the incoming CEO as to how the business can close the growth and margin gap to peers over time, albeit we are cognisant that increased investment to improve organic revenue growth (even if the right course of action) could place pressure on near-term forecasts."
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