We initiate coverage of PZ Cussons with a Buy rating and a 118p SOTP target price. After years defined by Nigeria FX shocks, a dividend reset and leverage pressure, a more focused story is emerging. The recent CMD drew a clear line under that period, resetting the financial framework and sharpening execution. Developed markets provide stable, cash-generative foundations, while Nigeria and Indonesia offer structural growth. Nigeria may polarise opinion, but the opportunity is significant and now sits within guardrails that reduce balance sheet risk. With disposals underway, free cash flow strengthening, leverage <1x and earnings upgrades coming through, financial repair is tangible. We forecast a two-year 14% EPS CAGR and, with the stock on <11x May’27 P/E and a 4% yield, see scope for re-rating as delivery becomes more consistent a compelling recovery, value and income opportunity.
