Canaccord boosts target price for Norcros

Analysts at Canaccord Genuity hiked their target price on shares of Norcros, telling clients it was "potentially" the most undervalued stock in its sector.

The branded showers and bathroom accessories provider's finals on 14 June had come in comfortably ahead of their estimates and progress on its pensions deficit, UK core brands and South Africa.

On the back of the above, they revised up their estimates for the company's revenue and earnings before interest, taxes, depreciation and amortisation over the next two years by roughly 3% and 12%, respectively.

In parallel, they boosted their target price from 217p to 315p, mainly because of the relative valuation of the peer group composite and the significant reduction in its pension deficit, which had been cut by 36% from its first half 2017 levels under IAS 19R.

Their recommendation on the shares was left undisturbed at 'buy'.