Panmure Liberum has reiterated its buy rating on MP Evans Group plc after the company announced a 20% increase in its interim dividend, exceeding the anticipated 5% growth.
Analysts highlighted the company’s better-than-expected results and maintained its full-year profit before tax (PBT) forecast, projecting growth of 8%.
Panmure Liberum raised its net cash forecast for MP Evans from $4 million to $10 million by the year-end, following strong performance from the company’s working capital.
The firm also reiterated its target share price of 1150p.
“MP Evans is clearly benefiting from its maturing plantations (the average age is c11 years), expanded milling capacity and its ability to increase the crop supply from its owned areas (and that from its scheme smallholders), following recent investments in new capacity and a series of acquisitions,” said Panmure analysts.
MP Evans shares added 5.3% to 899.2p on Monday.