Jefferies has raised its price target on The Magnum Ice Cream Company (EURONEXT:MICC, LSE:MICC, NYSE:MICC), the world's largest pure-play ice cream business, while keeping a hold rating and cautioning that this year's strong sales will be hard to repeat.
The broker lifted its target by 15% to €15.60, from €13.50, but that still sits 8% below the recent share price of €17.01.
Jefferies said 2026 was shaping up to be a good year for Magnum, helped by an exceptional North European summer that lifted volumes.
European and Australasian volumes accelerated to 5% in the second quarter, with the heatwave adding an estimated three percentage points to group volume growth in the period.
The broker raised its forecast for full-year like-for-like sales growth to 5%, from 3.6%, and nudged up its operating margin estimate.
However, it warned that the summer boost creates a more demanding comparison for next year.
Jefferies cut its 2027 like-for-like growth forecast to 1.5%, from 2.9%, assuming a return to more normal weather and some price cuts to stay competitive against cheaper confectionery.
That reassessment leaves its 2028 earnings forecast broadly unchanged, since the current gains are seen as largely temporary.
The broker also flagged regulatory pressure in Turkey, Magnum's second-biggest market, where competition authorities have forced the company to reserve freezer space for rival products.
Magnum has reportedly already paid Turkish fines of around €75 million, with a fresh investigation this year carrying further penalty risk.
Magnum, which was recently spun out of Unilever, owns brands including Ben and Jerry's, Cornetto and Wall's, and holds roughly 21% of the global retail ice cream market.
Jefferies said the shares looked fully valued at 16 times forecast earnings, given the 2027 risks and longer-term questions over ice cream demand as consumers focus on healthier living.
