Deutsche Bank Raises Nichols Rating to Buy on Growth Momentum

LootboxPhobia · 2026-03-12T10:53:58+00:00

Deutsche Bank upgraded Nichols PLC shares to Buy, maintaining a target price of 1,150 pence. Revenue increased across all four product categories, particularly with Vimto gaining market share in the concentrated juice market. The company expects to achieve mid-term growth and margin improvement through local bottling and a new ERP system.

LootboxPhobia

2026-03-12 10:53:58

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Investing.com - Deutsche Bank upgraded Nichols PLC (NICL.L) from Hold to Buy on Thursday, maintaining its target price at 1,150 pence.

The upgrade was made following an analyst presentation that showed revenue growth across the company’s four main product categories.

The company’s flagship brand Vimto ranks second in the UK concentrated juice market, with a market share of about 13%, up 4.6%, gaining share from market leader Robinsons, which holds approximately 30% of the category.

In the ready-to-drink non-carbonated beverage segment, revenue increased by 11.5%, nearly double the overall category growth.

In the flavored carbonated drinks category, Vimto’s revenue grew by 2.5%, while the overall category increased by 6.9%, despite a 4.6% decline in sales volume, reflecting the company’s strategic focus on value over volume. In the energy drinks sector, Vimto achieved a 41% increase, albeit from a small base.

Deutsche Bank stated that the shift to local bottling in Africa should support incremental growth in the region. The firm expects that increasing innovation and expanding distribution through major grocery retailers will enable Vimto to achieve medium-term growth.

The investment bank anticipates that implementing new enterprise resource planning systems focused on procurement and inventory management will improve profit margins. Deutsche Bank noted that the expected margin expansion may be reinvested to support brand growth.

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