Cranswick Shares Gain: Analyst Raises PT, Cites Strong Investment Ambitions

Cranswick's share price (LON: CWK) is on the move today, up 4% early in trading as Jefferies raises its price target on the stock to 6,200p from 5,700p, while reiterating a “Buy” rating. This positive adjustment reflects growing optimism regarding the company’s strategic direction and earnings potential, and indicates a perceived upside of ~20% from the most recent close.

Jefferies' analyst note highlights the firm's favorable view of Cranswick's increased investment plans. The firm anticipates continued solid performance, even without taking a firm view on the upcoming Q1 trading update.

Their decision to roll forward Cranswick's numbers and move slightly ahead of consensus underscores their conviction in the company's prospects.

“We have been impressed by the group's upweighted investment ambitions and believe earnings growth expectations are well underpinned,”

Cranswick's market capitalization has seen significant growth, increasing by 15.5% over the past year to reach £2.95 billion. Since its IPO in 1993, the company's market cap has expanded at an impressive compound annual rate of 18.03%.

Analysts at Deutsche Bank also recently increased their price target for Cranswick, setting it at 6,000p, while maintaining a “Buy” rating. This followed the announcement of a 12% growth in adjusted earnings per share (EPS) for fiscal year 2025.

Deutsche Bank highlighted Cranswick’s strong compounded annual growth rate (CAGR) of 11.5% in adjusted EPS from FY 2015 to FY 2025, and an impressive return on capital employed (ROCE) of 18.5%.

Cranswick is expected to release its Q1 trading update next week. While Jefferies does not have a strong view on the specifics of this update, its revised price target suggests confidence in Cranswick's ability to continue delivering solid results.