Analyst Jacob Armstrong of Stifel Nicolaus maintained a Buy rating on Kitwave Group PLC (KITW – Research Report), retaining the price target of p500.00.
Jacob Armstrong has given his Buy rating due to a combination of factors that highlight Kitwave Group PLC’s strategic positioning and growth potential. The company’s recent trading update indicates that despite challenges in the hospitality sector, Kitwave’s performance has been in line with expectations, with improvements noted towards the end of the period. This resilience is further supported by the robust performance of the Retail & Wholesale division, which has shown positive like-for-like trading.
Additionally, Kitwave’s strategic investments, such as the opening of a new Foodservice distribution center, demonstrate a commitment to enhancing operational efficiency and mitigating cost pressures. The successful integration of the Creed acquisition is also expected to yield significant synergy benefits, contributing to the company’s competitive advantage. Furthermore, Kitwave’s shares are perceived as undervalued compared to peers, offering a compelling investment opportunity with a target price that suggests substantial upside potential.
In another report released on May 7, Canaccord Genuity also reiterated a Buy rating on the stock with a p495.00 price target.
KITW’s price has also changed slightly for the past six months – from p334.500 to p305.000, which is a -8.82% drop .