Cranswick FY outlook remains in line with market expectations

Cranswick FY outlook remains in line with market expectations

Cranswick (GB:CWK) has reported strong trading in the first quarter of the financial year, with a 9.7% increase in revenue compared to the previous year. This growth was driven by new business wins, strong demand for premium products, and the acquisition of Blakemans. Additionally, the reinstatement of the Norfolk pork site’s China export license bolstered export revenue. The company is accelerating capital expenditure to enhance capacity and efficiency, with significant investment in the Lincoln Pet Products site. Cranswick also refinanced its banking facility, securing a £360 million revolving credit facility to support future growth [1].

The most recent analyst rating on (GB:CWK) stock is a Hold with a £4900.00 price target. According to Spark, TipRanks’ AI Analyst, GB:CWK is an Outperform. The strong financial performance, supported by robust revenue growth and profitability, is the primary driver of its solid stock score. However, the technical indicators suggest a neutral short-term outlook, and the valuation is fair, reflecting its growth potential [1].

Cranswick is a leading UK food producer specializing in premium, fresh, and added-value food products. The company operates 23 facilities across the UK, producing a range of high-quality foods including fresh pork, poultry, gourmet products, and pet food. Cranswick supplies major grocery chains and has a strong presence in the food-to-go sector and export markets [1].

Using a two-stage DCF model, Simply Wall St estimates that Cranswick’s fair value is UK£68.17, indicating that the company is estimated to be 22% undervalued based on the current share price of UK£53.20. The UK£57.93 analyst price target for CWK is 15% less than this estimate of fair value [2].

Cranswick’s FY outlook remains in line with market expectations, with analysts forecasting a 9.84% growth rate for the next ten years. The company’s strong financial performance and strategic initiatives support this outlook. However, investors should remain vigilant to any potential risks and consider other high-quality alternatives before making investment decisions [2].

References:
[1] https://www.tipranks.com/news/company-announcements/cranswick-reports-strong-q1-growth-and-strategic-investments
[2] https://simplywall.st/stocks/gb/food-beverage-tobacco/lse-cwk/cranswick-shares/news/is-cranswick-plc-loncwk-trading-at-a-22-discount