Analyst Andrew Wade from Jefferies maintained a Hold rating on Greencore (GNC – Research Report) and keeping the price target at p185.00.
Andrew Wade has given his Hold rating due to a combination of factors that reflect both positive developments and ongoing challenges for Greencore. The company has shown strong revenue and volume growth in the second quarter, driven by successful customer relationships and new business acquisitions. Additionally, Greencore has exceeded management’s profit expectations through effective operational initiatives and cost control measures, leading to an optimistic outlook for operating profit in the upcoming fiscal year.
Despite these positive indicators, there are factors that temper the enthusiasm for a more aggressive rating. The recent retrenchment in share prices suggests that while there is potential for growth, there are also underlying concerns that need to be addressed. The cost and efficiency improvements, although promising, may still face hurdles, particularly in the context of broader economic pressures such as the cost burden of NIC/NLW. These mixed signals contribute to the decision to maintain a Hold rating, reflecting a cautious yet hopeful stance on Greencore’s future performance.