Greencore Group PLC (LON:GNC) shares rose on Tuesday Morning as City broker Numis upgraded its rating to ‘add’ from ‘hold’ and increased its price target to 210p from 138p.
In a note to clients, the analysts at Numis said that following the profit warning in March, something needed to change at Greencore. Therefore, analysts regard a shift in focus in US strategy and a search for US CEO as encouraging developments.
READ: Greencore boosted by upbeat outlook following US restructuring
The analysts said: ”Combined with the good underlying performance of the business in the first half of 2018, we believe a change is warranted.”
“We believe that the strength of the Greencore’s competitive position and the underlying growth fundamentals in both the UK and the US arguably deserve a higher multiple.”
“Recent issues on guidance and a lack of consistent financial performance remain a concern and temper our enthusiasm,” the analysts said.
In morning trading, Greencore’s shares rose 1.65% to 187.50p.