Broker tips: PensionBee, Jadestone Energy

(Sharecast News) - RBC Capital Markets initiated coverage of PensionBee on Thursday with a 'sector perform' rating and 170p price target, stating it believes the firm's "simple and differentiated proposition" was an "ideal solution" to the proliferation of unconsolidated UK DC pension pots. RBC said it sees "a very compelling story" for those able to take a long-term view of PensionBee's structural growth runway.

"However, while a ramp-up in marketing expenses should bring long-term benefits, we expect a more muted near-term uplift, and expect it to mean minimal adjusted EBITDA improvement on a three-year view," it said. "Given we don't see this fully reflected within consensus, our excitement is for now constrained."

The Canadian bank sees the stock's valuation of 7x CY26E EV/sales as fair versus wealth management and investment platform peers, balancing the group's "high-growth trajectory and scalability" with its current non-profitability.

RBC added that it will continue to monitor for signs of improving operational momentum to help move the shares, which have been flat on a LTM view.

Analysts at Berenberg initiated coverage on exploration and production firm Jadestone Energy with a 'buy' rating and 68p target price on Thursday, stating the stock was "a jewel in the making".

Berenberg said Jadestone Energy stands out as one of the cheapest companies in its E&P coverage, trading at "a significant discount" to the value of its currently producing assets.

The German bank said Jadestone's production guidance for 2025 implies over 70% growth in output since 2022, and it forecasts further 20% growth by 2027. Importantly, Berenberg said, the production growth generates cost efficiencies, and it also expects to see underlying earnings growth and margin expansion over the medium term.

"In our view, this provides a strong platform as the company looks to continue exploiting organic growth opportunities in the portfolio, as well as pursuing accretive inorganic growth in the Asia-Pacific region," said Berenberg.

Berenberg added that its target price was derived from its net asset value-based methodology, as well as target multiples of 4.0x 2027E enterprise value/EBITDA and 3.5x 2027E enterprise value/debt-adjusted cash flow.