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Highlights

  • Analysts maintain a BUY recommendation on Hunting  with a consensus price target of GBp 445.63, implying a 56.09% upside.

  • Acquisition of FES expands Hunting’s subsea capabilities and is expected to be earnings accretive in its first year.

  • Q1 2025 EBITDA surges 34% YoY, driven by performance across product groups.

Hunting PLC (LSE:HTG), a precision engineering specialist servicing the global energy sector, has received a BUY rating from analysts with a calculated upside potential of over 56%, backed by strategic execution and financial performance. With multiple analysts issuing optimistic targets ranging from GBp 440 to GBp 600, investor sentiment has been lifted by recent developments, particularly the acquisition of Flexible Engineered Solutions (FES).

FES Acquisition Strengthens Offshore Portfolio

Hunting recently completed the acquisition of FES Group for £50 million, a move that is being widely viewed as a transformational step in line with the company’s Hunting 2030 Strategy. FES brings with it proprietary subsea fluid transfer technologies used in FPSOs and Subsea Distribution Systems.

According to management, the acquisition provides immediate strategic benefits:

  • It expands Hunting’s product portfolio and customer reach.

  • The proprietary technology of FES is margin-accretive and cash generative.

  • The deal is expected to be earnings accretive in the first full financial year, excluding standard acquisition adjustments.

The company highlighted synergies across regions such as Brazil, Southeast Asia, the US, and West Africa, leveraging its global footprint to scale FES’s operations. 

Q1 2025 Performance Underscores Operational Momentum

In its latest trading update, Hunting reported an EBITDA of $38.7 million for Q1 2025, a significant increase from $28.9 million in Q1 2024, with EBITDA margins expanding from 12% to 14%. All product lines traded in line with expectations, reflecting well-managed execution across the board.

While the quarter saw a temporary net cash outflow due to increased working capital investment and share buybacks, the Group maintained a liquidity position of $58 million. The company also completed the acquisition of Organic Oil Recovery technology and exited its non-core holding in Rival Downhole Tools.

Analyst Ratings Support Positive Long-Term Outlook

According to market data, the mean target price for Hunting PLC currently stands at GBp 445.63, with a current recommendation score of 2.11. Notably:

  • Zeus provided a price target of GBp 450, reflecting 57.62% upside.

  • Jefferies assigned a target of GBp 350, representing a 22.59% upside.

  • Berenberg provided a GBp 465 target, reflecting a 62.87% upside potential .

  • Canaccord Genuity sees potential up to GBp 600, implying a 110% gain from current levels.