J.P. Morgan placed Inchcape on positive Catalyst Watch and lifted its price target to 880p from 800p, sending shares up over 4% to 837p as of Feb. 17. The bank maintained a "neutral" rating on the automotive distributor ahead of its full-year 2025 results scheduled for March 3.

Analyst Akshat Kacker raised 2025 and 2026 underlying EPS forecasts by 6% and 7% respectively to 81.6p and 93.8p, driven by stronger volume growth in the Americas and Hong Kong. New car volumes turned positive in Q3 2025, rising 13% year over year, with J.P. Morgan forecasting Q4 volumes up 15%.

The brokerage estimates free cash flow of approximately £340 million in 2025 and £360 million in 2026, with a £175 million share buyback planned for 2026. The stock trades at 9x/8x J.P. Morgan's 2026/2027 P/E estimates, within its historical range, despite risks including market share losses and Chinese OEM expansion globally.