Broker tips: Clarkson, Domino's Pizza, Admiral

(Sharecast News) - Analysts at Berenberg raised their target price on shipping firm Clarkson from 4,750p to 5,250p on Tuesday, stating current "macro uncertainty" was driving further momentum. Clarkson released its full-year results on 9 March, posting an adjusted profits of £90.6m - in line with the guidance that was initially set in May 2025 during tariff-related uncertainty and FX headwinds.

Berenberg said the result confirmed "a typically stronger H2 result", which was expected given the recovery in freight rates over 2025, while its outlook pointed to "continued momentum to date in FY26", which has been further compounded by recent events in the Middle East.

"With recent spikes in certain vessel rates, we expect momentum has further accelerated over the last fortnight, albeit there remains significant uncertainty. To initially reflect this more positive outlook, we upgrade our FY26 EPS forecast by 2% to 261p and think that further upgrades could follow," said Berenberg, which has a 'buy' rating on the stock.

"We move our price target from £47.50 to £52.50 by rolling forward our valuation considerations, reflecting the current outlook. On our updated forecasts, Clarkson trades on an FY26 price-to-earnings ratio of 17.3x (14.6x excluding cash) and a 2.6% dividend yield."

Shore Capital has kept a 'hold' rating on Domino's Pizza Group despite the stock's below-average valuation, noting that annual results on Tuesday reflected an ongoing tough backdrop for the company.

The UK master franchise of the American pizza chain reported results for the 52 weeks ended 28 December that were broadly in line with expectations, with difficult trading conditions continuing in the second half.

However, the first nine weeks of the new financial year were said to have started with positive momentum, with the board content with current market forecasts for full-year EBITDA.

Shore Capital said it remains neutral on the stock, predicting neither major upside nor downside, despite the valuation still at a discount to sector peers, trading at an EV/EBITDA multiple of 8x compared to the average 12x, at an 11% free cash flow yield on this year's estimates.

"Furthermore, we believe areas such a loyalty and leveraging the strong brand awareness present growth opportunities over the medium term," the broker said. "However, our 'hold' stance reflects caution over earnings visibility during a period of change of management, and ongoing consumer backdrop headwinds."

UBS upgraded Admiral on Tuesday to 'buy' from 'neutral' and lifted its price target on the stock to 3,550p from 3,300p.

UBS estimated that the UK motor insurance market has a high probability of pricing in excess of inflation over the coming six months, noting that while industry data points suggested pricing was "currently around inflationary trend", Admiral has raised prices year-to-date in excess.

"Four drivers that cause us to be more optimistic are: 1. Admiral's year-to-date action, 2. peer commentary at full-year results, 3. Monthly CPI data and 4. EY industry forecast margins."

UBS noted that Admiral's price-to-earnings multiple has a strong positive correlation with UK motor insurance pricing and said it expects this to continue. It also said the company's 2025 result was a landmark, noting that aggregate profits from UK Home, Travel & Pet, Europe and Admiral Money were close to £100m, with these now expected to more than double by 2028.

"This should lead to a group share of profit of circa 15%, and likely to grow still," it said. "In addition, the Internal Solvency model details should provide a one-off catalyst over the next 12 months which we estimate could result in an additional 1.5- 3% of market cap being distributed to shareholders, not in our forecasts."