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HIGHLIGHTS

  • Berenberg analyst Robert Chantry reaffirmed a Buy rating on Eurocell PLC with a target price of AUD 5.57 (GBp 265).

  • The target price implies a potential upside of more than 106% from the current price.

  • Eurocell delivered a 9% rise in adjusted operating profit in H1 2025, supported by contributions from the Alunet acquisition.

Eurocell PLC (LSE:ECEL), the UK-based manufacturer and distributor of window and door products, has received continued support from analysts at Berenberg. On 4 September 2025, Robert Chantry reaffirmed a Buy recommendation on the company’s shares with a price target of AUD 5.57 (GBp 265).

The target price represents a significant 106.9% premium compared to Eurocell’s current share price of AUD 4.64 (GBp 225). 

Financial Performance in H1 2025

For the six months ended 30 June 2025, Eurocell reported adjusted operating profit growth of 9%, supported by the performance of its recently acquired Alunet business. However, adjusted profit before tax fell 3% due to higher finance costs linked to the acquisition.

Group sales increased 10% year-on-year, or flat when excluding Alunet, with organic volumes declining by 2%. Within its divisions, Profiles sales rose 1%, while the Branch Network division saw a 1% decline, reflecting softness in the repair, maintenance and improvement (RMI) market.

Alunet contributed AUD 17.7 million (£9.3 million) in sales during H1, representing 36% year-on-year growth and enhancing Eurocell’s position in the aluminium systems and composite door markets.

Shareholder Returns and Capital Management

Eurocell continues to deliver value to shareholders through a mix of dividends and share buybacks. In H1 2025, the company announced £7.3 million in shareholder returns, including:

  • An interim dividend of 2.3 pence per share, up 5% from last year.

  • A £5 million share buyback programme announced in March 2025, with 2.2 million shares already purchased by September.

The company has reiterated its intention to continue buybacks while maintaining a significant balance sheet.

Strategic Initiatives and Outlook

Eurocell is executing on its five-year strategy with progress across key initiatives:

  • Branch expansion: Nine new branches opened or relocated in 2025 to date.

  • Windows and doors sales programme: rolled out across all 216 branches.

  • Digital growth: e-commerce sales increased 41% to AUD 5.8 million (£2.9 million) in H1.

  • Cost reduction: restructuring measures in the Branch Network expected to deliver annualised savings of at least £4 million.

Despite subdued market conditions and macroeconomic uncertainty, Eurocell remains focused on growth, operational efficiency, and sustainability.

With Berenberg’s Buy rating and a price target more than double the current market level, Eurocell is receiving popsitive analyst backing