Investec reiterates 'buy' rating and raises target price at Cranswick

Shares in Cranswick gained on Thursday as Investec reiterated its ‘buy’ rating and raised its target price to 2,086p from 2,065p.

Cranswick reported trading in the third quarter was in line with the board's expectations, with total revenue in the three months to 31 December 5% ahead of the previous year. It was driven by strong volume growth of 11%, and underpinned by a good Christmas trading period, which the group had anticipated.

“The strong volume performance from Cranswick over the festive season was broadly based by product and customer,” according to Investec analyst Nicola Mallard.

“Whilst some of the growth reflects a contract regain, there is sufficient momentum in the wider business to see growth continue past the anniversary of the win.”

The analyst noted that UK pig prices were weaker, following the typical seasonal pattern in January.

Mallard said the direction of UK pig prices over the next few months could influence the full year outcome so Investec will revisit its numbers again at the full year pre-close statement.

Shares rose 0.88% to 2,002.44p at 1034 GMT.