Berenberg initiates coverage on Rosebank Industries at 'buy'

(Sharecast News) - Analysts at Berenberg intiated coverage on capital markets business Rosebank Industries with a 440p target price and a 'buy' rating on Tuesday, pointing to early progress in lifting margins at its Electrical Components International subsidiary its solid management team. Rosebank was founded by several key members from London-listed Melrose Industries to recreate its privatee quity-esque "buy, improve, sell" model, which hasl mostly provided returns of 2-3x investors' original equity investment.

The first Rosebank acquisition, Electrical Components International, was completed on 19 August and ECI management has already made initial pricing changes, moving adjusted underlying earnings margins to 15%, with a further 300bp of margin targeted through Rosebank directed restructuring action.

Berenberg also noted that management was reviewing further acquisitions, both complementary ECI bolt-ons and non-ECI-related and that it plans to move to the main market in the second quarter of 2026.

"We value Rosebank using an EV/EBITDA basis, using our FY27E adjusted EBITDA forecast and the average FY27E multiple of our international peer group. This results in a 12-month price target of 440p. We have sense-checked this against a PER-based method and also optically reflected on where Rosebank is on the roadmap to doubling shareholders' equity," said the German bank.





Reporting by Iain Gilbert at Sharecast.com