finnCap repeated its 1,300p price target on MP Evans Group PLC (AIM:MPE) after “another strong year” for the palm oil company.
“Current trading is encouraging with production performance and the CPO [crude palm oil] price ahead of our assumptions,” the broker said in a note to clients. “Full-year cash flow performance remains exceptionally strong.”
Earlier, MP Evans said it would celebrate its 150-year anniversary by paying off its debts and hiking its dividend by 21%.
Peel Hunt was also positive on the stock, restating its 'buy' and 1,140p price target. "MP Evans has had another good year, with a healthy improvement in crops, helpful pricing and continued development of assets," it added.
The broker pointed out MPE's NAV grew 18% to 1,894p, which was due to the "weakness in sterling vs the dollar and a positive underlying performance".
Having traced its origins back to the early 1870s, the producer of sustainable palm oil is marking its sesquicentennial anniversary this year with celebratory events in Indonesia and the UK.
Revenue of US$326.9mln was generated in the 2022 calendar year, up 17% on the prior year, as production and average mill-gate prices both increased, as revealed in January.
Gross profit increased by 5% to US$109.2mln while operating profit fell 11% to US$101.6mln as the previous year saw a US$13.9mln benefit from a one-off gain on a land sale.
Operating cash generation jumped 21% to US$132.2mln, which saw a net cash position of US$33.5mln at year-end, compared to net debt of US$5.4mln last time.
The shares traded sideways at 834p.