Berenberg starts Applied Nutrition at 'buy'

(Sharecast News) - Analysts at Berenberg initiated coverage on sports nutrition business Applied Nutrition with a 'buy' rating and 215p target price on Thursday, stating the firm was "primed for growth".

Berenberg said it likes Applied Nutrition for its combination of early-stage global growth potential, while already delivering best-in-class margins and strong cash conversion.

The German bank said the global sports nutrition, health and wellness market was forecast by Euromonitor to grow by an 8.1% compound annual growth rate to reach £280bn by 2028. It noted that Applied Nutrition has a sub-0.1% share of the global market, highlighting the long-term growth potential.

Berenberg expects Applied Nutrition to grow its revenue from £86.2m to £107m by FY27, representing a 15.6% CAGR. It said the group's business-to-business and distributor-led model enable it to enter new regions quickly and at a low cost, driving its global expansion.

"Our 215p price target, represents c25% upside, and is based on our three-stage DCF analysis. It implies an FY 2026E P/E of 21.2x for a three-year EPS CAGR of 11.4%. Our forecasts are prudently set, in our view, with material upside as APN continues to unlock its global growth potential," said Berenberg.







Reporting by Iain Gilbert at Sharecast.com