Broker tips: Centrica, Vanquis Banking, Oxford Nanopore

(Sharecast News) - Jefferies downgraded Centrica on Monday to 'hold' from 'buy' as it pointed to a more balanced risk-reward on the stock at current trading. The broker noted that Centrica shares are up more than 10% year-to-date and trading at 10x Jefferies' estimated 2030 price-to-earnings.

"In our view, the bull case for Centrica requires more visibility on post-2028 growth drivers," it said.

"We see a lack of near-term catalysts along with near-term negative earnings revisions as overhangs for the stock, and we see better set-ups elsewhere in the Euro Utils sector through grids/power demand exposure.

"With a more balanced risk-reward on the stock at current trading, we downgrade to hold."

Jefferies lifted its price target on the stock to 210p from 200p.

Shore Capital placed a 'buy' rating on Vanquis Banking Group, saying it now sees 25% upside to its 150p target price after a period with the stock under review.

2025 results from the company, published on 26 February, demonstrated a "a clear recovery in financial performance, as expected, with a return to profitability, stronger-than-expected balance growth and sharply improved efficiency, prompting upgraded volume and cost guidance, albeit alongside lower margin assumptions", Shore Capital said.

The broker said that delivery risk remains to achieve Vanquis's targeted progress to a mid-teens return on tangible equity - which improved to 2.3% in 2025 from -32.1% in 2024.

Hitting this target "will require continued strong execution, particularly in turning Vehicle Finance profitable, offsetting mix-driven margin dilution with volume and efficiency gains, sustaining cost discipline as the group scales, and fully realising the operational benefits of Gateway [its tech transformation programme]", Shore Capital said.

However, if this is achieved, then the current valuation - a price-to-tangible net asset value multiple of 0.8x on 2026 estimates - is "undoubtedly too low and a further re-rating should occur", the broker said.

Analysts at Berenberg lowered their target price on Oxford Nanopore Technologies from 250p to 230p after the nanopore sequencing products developer released its full-year 2025 results.

Berenberg said Oxford Nanopore's results were "largely in line with expectations", noting that the company had delivered "a strong performance in 2025" despite a "difficult macro environment", with constant currency revenue growth ahead of guidance at 24.2%.

The German bank noted that despite "ongoing macro uncertainty", Oxford Nanopore still expects to reach EBITDA breakeven by 2027 and cash breakeven by 2028.

"However, it has adjusted the assumptions in its medium-term guidance, now expecting lower revenue growth (leading us to lower our revenue forecasts) but higher gross margins and lower operating cost growth," said Berenberg, which reiterated its 'buy' rating on the stock.

"Regardless of these changes, we continue to see substantial upside in the ONT share price."