Canaccord Genuity hikes target price on Applied Nutrition

(Sharecast News) - Canaccord Genuity lifted its target price on Applied Nutrition from 335p to 365p on Wednesday, citing another strong upgrade cycle and a step‑up in FY27 guidance. Canaccord Genuity said Applied Nutrition's FY26 trading update delivered a clear beat, with revenue up 50% year‑on‑year to £160m, around 8% ahead of consensus, and adjusted underlying earnings rising 40% to £43.3m, slightly above market expectations.

Momentum remained broad‑based across markets and channels, while the recent Nutrablend acquisition was described as strategically important for the firm's long‑term North American ambitions, with integration progressing to plan.

Looking ahead, Applied Nutrition raised FY27 revenue guidance to £205m, up 28% year-on-year, while underlying earnings were seen 13% higher at £49m, both ahead of consensus.

Canaccord noted margins were expected to moderate slightly due to a greater contribution from the lower‑margin US business, higher whey costs and a larger mix of whey‑based products following a successful relaunch of Critical Whey.

The Canadian bank increased its FY26/27 revenue forecasts by 8% and 11%, respectively, while EBITDA expectations were raised by 3% and 2%, respectively, marking APN's fourth upgrade to FY26 expectations this year. On updated numbers, Canaccord said APN trades on 23.5x FY27E earnings, falling to 21.3x FY28E, and 15.9x FY27E EV/EBITDA, falling to 13.9x FY28E.

Canaccord also reiterated its 'buy' stance on the stock, highlighting APN's superior growth profile, strong margins and significant global expansion opportunities.







Reporting by Iain Gilbert at Sharecast.com