Greencore Group PLC surged almost 12% on Thursday after fetching backing from Deutsche Bank analysts on expectations for hiked returns ahead.
Following the food company’s capital markets day, Deutsche flagged management targets for a 15% return on invested capital over the medium term, against 11.5% in 2024.
This would reflect revenue growth of 3% to 5% and an adjusted margin in excess of 7%, Detusche said.
Opportunities for growth within its core business, alongside “addressing the three C’s” of new categories, customers and countries should support revenue ambitions.
Strategic merger and acquisition activity could further supplement the targets, analysts added.
Greencore was granted a ‘buy’ rating, against ‘hold’ previously, while its share price target was lifted from 195p to 225p.
Shares were up 11.9% at 204.68p on Thursday.