Berenberg Lifts Target Price for Coca-Cola HBC Amid Africa Acquisition

Analysts at Berenberg have increased their target price for Coca-Cola HBC to £5,483 per share from £5,453, citing the company's upcoming acquisition of Coca-Cola Beverages Africa.

The deal is expected to strengthen CCH's long-term growth profile by giving it access to a large and fast-growing consumer base in Africa.

Berenberg notes that CCBA's core markets offer significant 'demographic dividend', with working-age populations set to grow at more than twice the pace of CCH's existing footprint.

The bank also highlights a margin opportunity, with CCBA's operating margin of 7.4% in FY24 remaining weak relative to peers and its own history.

Meanwhile, Canaccord Genuity has lifted its target price for Victrex to £1,050 per share from £725, following the company's capital markets day last week.

The Canadian bank says the event marked a 'back-to-basics' reset for Victrex, with management outlining a focused plan to improve returns and scaling back non-core activities.