Greencore Group PLC (LON:GNC) was downgraded to ‘hold’ from ‘buy’ by Jefferies over a longer period of uncertainty than initially planned.
Analysts chopped the target price to 165p from 235p after data for the three weeks to 30 April showed sandwich sales through grocers, Greencore’s main market, tanked by 60% - while Jefferies expected a 30% drop.
READ: Greencore says food production facilities “fully operational” amid coronavirus
“[In March] we expected a short, sharp, shock that the balance sheet would be big enough to take,” analysts commented.
“Now, with more insight post-lockdown, we anticipate a deeper and longer shock — one that the balance sheet is still big enough to take, but which is likely to require a more fundamental re-positioning and adjustment of expectations.”
The FTSE 250 group, which makes everything from microwave meals, sandwiches, wraps, salads, sushi and soups, is expected to emerge from the crisis thanks to “resilient balance sheet and capable management”.
Shares slipped 14% to 144.9p on Thursday late morning.