RBC Capital upgrades Hilton Food, cites compelling ‘valuation’

RBC Capital Markets upgraded Hilton Food to ‘outperform’ from ‘sector perform’ on Friday, hiking the price target to 1,500p from 1,200p as it said the stock’s valuation looks compelling.

"It's relatively undervalued on an EV/IC versus return on invested capital basis and our new £15 price target implies 30% upside," the bank said.

"At the same, the outlook has improved: a material step back in capex will drive higher returns on capital, and revenues from substantial investments in Australasia and Europe are to start flowing through."

RBC added that Hilton Food is a good inflation hedge.

At 1110 BST, the shares were up 2.9% at 1,231.18p.