Analysts recommend Cranswick after strong results

Investec Securities has recommended Cranswick stock after the food producer, which focuses on fresh pork and pork products, delivered a better than expected result in 2011/12.

Though the company had a challenging start to the year, it recovered in the second half, posting record sales and profits, with a healthy recovery in margins.

Investec noted that current sales momentum looks strong, assisted by the competitiveness of pork in the market, and the company’s strong innovation record.

Cranswick, which makes food for Jamie Oliver, Black Farmer, Weight Watcher ranges as well as own label for the supermarket, is waiting for final approval to export pork to China, after the UK government and Chinese official announced a land-mark trade agreement on imports.

“The momentum in 2H was encouraging and should bode well for a decent start to 2012/13,” Investec said in its analysis of the company.

“We have been cautious in our forecasts in light of still challenging consumer markets and EU regulatory changes, but still feel the stock offers good value with our target price set at 920p.”

Investec recommends buying Cranswick stock and forecasts a total return of 17.3%.

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