Wincanton’s record full year was in line with Liberum’s forecast, which held its 'buy' recommendation on the stock.
The target price was, however, trimmed slightly to 390p from 400p due to a “challenging” short-term outlook.
Liberum noted that the logistics company's decision to exit its closed-book transport activities is viewed as a case of a challenging trading environment accelerating a strategic move, rather than an outright change in strategy.
“Its scale will actually increase in net terms, despite the closed book exit, due to a major contract win with Sainsbury’s/Argos, under a new exclusive five-year transport management contract,” analysts wrote.
Focus for the current year is solely on delivery, they said, with success crucial to hitting estimates and restoring investor confidence.
Revised pension contributions remain a key catalyst, they added, with news likely within the next six months.