Wynnstay Shares: Shore Capital Sees Significant Rerating Potential

Wynnstay (LON: WYN) shares could see material upside as its operational strategy gains momentum, according to Shore Capital, which reiterated its positive stance following the agricultural group’s upbeat trading update. 

The broker, which acts in an advisory capacity to Wynnstay, highlighted what it called “very exciting times ahead,” arguing that Wynnstay’s multi-year Project Genesis programme is delivering visible benefits and setting the stage for sustained earnings growth.

Wynnstay shares rallied more than 7% on Monday following the company's update.

Shore Capital said Wynnstay is executing well on margin improvement, cost discipline and commercial focus, noting that FY25 forecasts have been lifted by around 6% after stronger-than-expected profitability. 

The analysts emphasised that the programme’s first phase “is firmly on track,” with early gains already emerging across divisions. The core implementation phase runs through FY26–27, after which the broker expects accelerated growth and scale benefits.

The firm also pointed to Wynnstay’s strengthened financial position, with net cash upgraded to £26.4 million, providing “significant headroom for continued investment” as the group expands capacity at Carmarthen and enhances production capabilities in Bristol.

 These developments support its view that Wynnstay has laid “a solid and efficient growth foundation.”

Looking ahead, Shore Capital believes Wynnstay is well placed to grow market share through cross-selling and by leveraging new capacity in Feed & Grain. It also sees longer-term potential for a rerating, noting the shares trade on an FY26 EV/EBITDA of 4.2x and at a “c.45% discount to NAV.”

If management continues to deliver, the analysts argue, Wynnstay could achieve a 10% return on net assets within three years, a level that, in their view, would support “sustainable earnings growth and significant rerating potential.”