Shore Capital has reiterated its positive stance on Premier foods (LSE:PFD) after a site visit to the group’s Ambrosia plant in Devon.
Analysts said the highly automated facility underlined the company’s progress in boosting capacity and efficiency, while supporting its five-pillar growth strategy of strengthening the UK core, investing in infrastructure and expanding categories.
The Ambrosia brand generates more than £100 million in annual retail sales and has successfully diversified from custard into rice and porridge, including under the FUEL10K label.
Lifton, where most of this is produced, now handles over 16.5 million cases a year and is set for further output increases thanks to new pot-filling and UHT lines.
ShoreCap also noted the recent acquisition of Merchant Gourmet, a premium convenience food brand, which it sees complementing earlier purchases of The Spice Tailor and FUEL10K. Forecasts have been nudged higher to reflect its contribution.
Premier’s stronger finances, with net debt falling and capital spending rising towards £50–60 million annually, mean it can invest heavily while still funding bolt-on deals.
With the shares trading at about 188p, the broker said the stock offers value at 12.9 times 2026 earnings and a free cash flow yield of nearly 8%.
The shares were flat at 188p.