Davy Morning Equity Briefing
May 05, 2026
Uniphar
Significant upgrades to forecasts and price target
We upgrade our Uniphar EPS forecasts by 7-8% in 2026 and 2027, driven by strong EBITDA growth and lower-than-expected finance charges. This is our fourth upgrade since the start of last year. We also raise our price target to €6.70, which is based on the company achieving its €200m EBITDA target in 2028.
Associated British Foods
Model update and demerger analysis
We are lowering our FY26 and FY27 adjusted operating profit forecasts by c.5% and c.11% respectively, primarily reflecting further weakness in Sugar; in aggregate, we have reduced our FY26 profit forecasts by c.26% over the last 12 months. While we believe this is reflected in the valuation, visibility on a sustained recovery in earnings momentum remains limited. The proposed demerger of Primark is strategically coherent but does little to alter this near-term dynamic given the extended lead time and limited disclosure on the standalone businesses. In this report, we provide an initial assessment of Primark as a separate entity. The financial profile appears solid, but a clearer articulation of growth, reinvestment and returns will be required to establish a more compelling standalone equity narrative.
