McBride PLC (LSE:MCB) has secured a major contract manufacturing partnership across Europe, prompting analysts at Peel Hunt to significantly raise their price objective.
The shares jumped 16.49% to 195p as the City broker reiterated its 'buy' recommendation and raised its target from 190p to 230p.
At the heart of the update is a strategic European supply agreement with Vestacy, a joint venture between Advent and Reckitt Benckiser.
That new partnership is expected to be materially accretive to the contract manufacturer as the strategic supply agreement formally rolls out across Europe.
By the second half of 2028, Peel Hunt forecasts that the strategic supply agreement will add 16% to group revenue and 14% to operating profit.
Those expanded operations will increase McBride's lead in the sector while materially improving forward financial visibility and free cash flow generation.
Despite the upgraded outlook, the shares are currently trading on roughly seven times projected earnings for the 2027 financial year.
On an enterprise value-to-underlying profit basis, the stock also trades at a modest multiple of just 5 based on those same estimates.
This transaction ultimately delivers a significant step up in corporate scale and earnings as the group progresses toward that 2028 maturity milestone.
