Cranswick shares fall as Numis downgrades rating to 'hold' from 'add'

Cranswick’s shares were under the cosh on Monday as Numis downgraded the food producer’s stock to ‘hold’ from ‘add’ and cut the target price to 2,311p from 2,536p.

While the company last week revealed a strong set of first half results, Numis noted the market's increased wariness of consumer-related stocks.

Revenue for the Yorkshire-based meat specialist of £580.8m was up 15.9% on the same period last year, while underlying revenue rose 8% and export were boosted by “particularly strong” sales to the Far East that surged 83%.

The group’s 'buy and build' strategy, which has been pursued for decades, will be continued and by 2018 Cranswick is aiming to process 60,000 pigs per week.

“Our target has though been reduced to reflect the mounting worries for consumer-linked stocks in 2017,” Numis said.

“Rest assured though that Cranswick will remain very much a medium term winner.”

Shares fell 3.54% to 2,152p at 1250 GMT.