Cranswick, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Andrew Wade from Jefferies maintained a Buy rating on the stock and has a £62.00 price target.
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Andrew Wade has given his Buy rating due to a combination of factors, including Cranswick’s strong revenue growth and positive performance in the first half of the year. The company reported a like-for-like revenue increase of 7.9%, with total revenue growth reaching 10.4% due to strategic acquisitions. This growth was driven by a significant 19% increase in the Poultry segment, which now constitutes 20% of the company’s mix.
Additionally, Cranswick achieved a 20 basis point improvement in EBIT margin, reaching 7.7%, despite a slight decline in return on capital employed due to recent investments. The momentum from the first half has continued into the third quarter, suggesting potential upside in the second half of the year. Overall, Wade views Cranswick as a high-quality company with strong compounding potential, supporting his positive outlook and Buy rating.