Kerry Group: Model update: Volumes improving, whilst MT targets confirm a quality growth model at attractive valuation

研报英文原文证据摘录

Kerry Group: Model update: Volumes improving, whilst MT targets confirm a quality growth model at attractive valuation

J P M O R G A N Europe Equity Research

29 July 2026

Kerry Group Overweight

KYGa.I, KYGA ID

Model update: Volumes improving, whilst MT targets Price (28 Jul 26):€85.65

confirm a quality growth model at attractive valuation Price Target (Dec-27):€105.00

We update our model following today’s H126 results, raising slightly our EPS 26E European Food Producers and

by c1% on the back of more favourable FX and slightly higher volumes growth. Household & Personal Care

After the Q2 beat, we raise our volume growth for the year to +3.5% (from +3.3% Products

prior), with better visibility on an H2 volumes of +3.7%. The new mid-term volume Edward G Hockin AC

guidance, meanwhile, is aligned with consensus and JPMe, and makes for a more (44-20) 7742-6937

credible and deliverable target in the absence of end-market consumption edward.hockin@jpmorgan.com

acceleration. Margin ambitions for 20-21% also narrow the gap to specialty Celine Pannuti, CFA

ingredient peers and will offer a higher quality P&L, with Gross Margin stepping (44-20) 7134-7123

celine.pannuti@jpmorgan.com

up to 39%+ and R&D raised to the 5-6% range - illustrative of a portfolio more J.P. Morgan Securities plc

weighted to value add solutions and good topline leverage. Higher FCF and

ROACE ambitions are also welcome. On updated estimates, the stock trades on Specialist Sales contact details:

15.4x PE 27E and 12x EV/EBITDA 27E, a valuation which we see has scope to Olivia Petronilho - Specialist Sales -

re-rate on the quality of top-line growth and margin drivers, and with TSR European Consumer

opportunity into the teens on HSD+ EPS growth and BS optionality for sustained (44-20) 3493-3709

share buybacks.