Jefferies restores Johnson Matthey to 'buy' with 2,330p target

What Brokers Say Basic Materials Written by: Ian Lyall 12:21 Tue 04 Aug 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Johnson Matthey PLC ( LSE:JMAT ) View Price & Profile Jefferies restores Johnson Matthey to 'buy' with 2,330p target Published: 12:21 04 Aug 2026 BST Jefferies has reinstated coverage of Johnson Matthey PLC (LSE:JMAT) with a 'buy' rating and a 2,330p price target, arguing the investment case now rests on the company's own delivery rather than deal risk or macroeconomic sentiment. The target implies around 17% upside from the previous close of 1,992p. Analyst Helena Xu said completion of the Catalyst Technologies divestment removes the last disposal risk from the cash story, with deleveraging on track and shareholder returns now comfortably funded and calendar-certain. The margin path at Clean Air, the emissions catalyst business, is the core of the case. Management is working towards a 16% to 18% margin ambition for the 2028 financial year through overhead reduction, footprint consolidation and commercial mix, regardless of the regulatory backdrop. Jefferies forecasts an average uplift of about 150 basis points and a 17.4% margin in that year. Heavy-duty diesel, consistently more than a third of the autocatalysis business, is where regulation could add further support, with new US emissions rules seen as a medium-term positive. The acquisition of Cormetech, bought at an enterprise value of $360 million on a 10.3 times multiple plus up to $100 million in earn-outs, is small but strategically significant. It implies roughly 13% compound annual earnings growth to 2028 on a business worth less than 5% of the group. The attraction is the pivot away from a structurally declining autocatalysis base towards a $300 million order book and a $1 billion US data centre pipeline. Precious metals prices are expected to moderate to a low single-digit percentage benefit to operating profit. Refinery execution becomes the swing factor, with peak metal losses probably behind but peak cost not, given dual-running and higher depreciation at the UK refinery through the current financial year. Jefferies sits around 14% above consensus on operating profit over the next three years, and sees free cash flow guidance of more than £250 million by the 2028 financial year as plausible, if anything conservative. In afternoon trading, the shares were up 5.7% at 2,092p. Continue reading