Cranswick has received a hefty price target upgrade from Jefferies, which sees avian flu issues under control and potential benefits from downtrading due to the cost of living squeeze.
The US broker has upped its target by 17% to 3,670p and kept a buy rating, adding the recent interim results underpinned forecasts for the year.
“Poultry and pork are respectively 48% and 40% cheaper than beef. This should benefit CWK in a challenging macro environment where consumer wallets are squeezed,” said Jefferies in a note.
Poultry, meanwhile, is supplied by 75 dispersed farms, which limits the risk of contagion.
In England, captive birds have been kept indoors since 7 November and in Wales since 2 December. There have been 139 avian flu cases since October, Jefferies reported.
Shares have staged a rally recently but are down 14% year to date and with double-digit pricing set to continue Cranswick looks resilient and price-advantaged concludes the broker.