Berenberg initiates Stelrad Group stock with Buy rating on growth outlook

Published 06/19/2025, 04:32 AM
Berenberg initiates Stelrad Group stock with Buy rating on growth outlook

Berenberg initiated coverage on Stelrad Group PLC (LSE:SRAD) with a Buy rating on Monday, setting a price target of GBP2.00 for the steel panel radiator manufacturer.

The research firm cited Stelrad’s market leadership position across the UK, continental Europe, and Turkey as a key factor in its positive assessment. Berenberg highlighted the company’s low-cost manufacturing capabilities in Turkey, strong customer service, and established customer relationships as competitive advantages.

Stelrad’s management has outlined a medium-term strategy focused on growing market share by 1-2%, increasing the contribution per radiator above GBP21, and raising operating margins to 13%. Berenberg believes these targets are achievable based on current evidence.

The research firm expressed confidence that Stelrad could exceed these goals as European new-build and repair, maintenance and improvement volumes recover. The company’s strategic positioning appears well-suited to capitalize on these market trends.

Stelrad Group has established itself as a specialist manufacturer and distributor of steel panel radiators, with operations spanning multiple European markets and a manufacturing presence in Turkey that provides cost advantages.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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