Greencore (GNC – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Andrew Wade from Jefferies maintained a Hold rating on the stock and has a p185.00 price target.
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Andrew Wade’s rating is based on several factors related to Greencore’s updated investment strategy and financial targets. The company has outlined a strong growth platform with aims to expand in new areas, focusing on generating cash and achieving medium-term financial goals. These targets include achieving a return on invested capital greater than 15%, revenue growth between 3-5%, adjusted operating profit over 7%, cash conversion rate exceeding 55%, and maintaining a leverage target of 1-1.5x.
While these targets are ambitious and present a positive outlook, the current trading performance aligns with previous forecasts, and the details behind the strategic plans remain crucial to fully understanding the potential for growth. As such, despite the encouraging commitment to a higher operating margin, Andrew Wade maintains a cautious stance with a Hold rating, waiting to see how these plans unfold in practice before recommending a stronger investment stance.
According to TipRanks, Wade is a 3-star analyst with an average return of 2.7% and a 50.33% success rate.