Bakkavor Group (BAKK)

Sector:

Food

Index:

FTSE 250

156.00p
   
  • Change Today:
      2.00p
  • 52 Week High: 156.50
  • 52 Week Low: 81.00
  • Currency: UK Pounds
  • Shares Issued: 579.43m
  • Volume: 163,922
  • Market Cap: £903.90m
  • RiskGrade: 195

Berenberg lowers target price on Bakkavor

By Iain Gilbert

Date: Tuesday 13 Sep 2022

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg lowered their target price on food manufacturing group Bakkavor from 110.0p to 95.0p on Tuesday, citing lower earnings trajectory.
Berenberg stated that despite "significant headwinds", Bakkavor had reported a "resilient" set of interim results last week, with volumes remaining "steady", pricing gains helping offset mounting inflation, and internal costs remaining broadly flat.

However, the German bank stated that pressures were "not easing" and that Bakkavor was already utilising many of its "self-help levers".

"We think that profit growth will be limited in the near term; therefore, we think that there is limited scope for equity outperformance until pressures subside," said the analysts, who reiterated their 'hold' rating on the stock.

With that in mind, Berenberg added that while the UK appears to be challenging, it continues to be encouraged by Bakkavor's US performance, which recorded 35% like-for-like revenue growth in the first half - driven by volume growth in fresh meals, which continues to deliver an improving rate of sale.

"Meanwhile, margins in the US were hamstrung by cost inflation (EBITDA down 9% on reported revenue that was up 43%) - Bakkavor has negotiated improved pricing, which will help the segment deliver an improved profit performance in H2. Furthermore, scope for medium-term distribution gains are large, albeit constrained in the near term by capacity challenges," Berenberg added.





Reporting by Iain Gilbert at Sharecast.com

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Bakkavor Group Market Data

Currency UK Pounds
Share Price 156.00p
Change Today 2.00p
% Change 1.30 %
52 Week High 156.50
52 Week Low 81.00
Volume 163,922
Shares Issued 579.43m
Market Cap £903.90m
RiskGrade 195

Bakkavor Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
52.10% above the market average52.10% above the market average52.10% above the market average52.10% above the market average52.10% above the market average
48.15% above the sector average48.15% above the sector average48.15% above the sector average48.15% above the sector average48.15% above the sector average
Price Trend
95.32% above the market average95.32% above the market average95.32% above the market average95.32% above the market average95.32% above the market average
93.10% above the sector average93.10% above the sector average93.10% above the sector average93.10% above the sector average93.10% above the sector average
Income
67.47% above the market average67.47% above the market average67.47% above the market average67.47% above the market average67.47% above the market average
71.43% above the sector average71.43% above the sector average71.43% above the sector average71.43% above the sector average71.43% above the sector average
Growth
9.59% below the market average9.59% below the market average9.59% below the market average9.59% below the market average9.59% below the market average
48.15% above the sector average48.15% above the sector average48.15% above the sector average48.15% above the sector average48.15% above the sector average

What The Brokers Say

Strong Buy 3
Buy 2
Neutral 2
Sell 0
Strong Sell 0
Total 7
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Bakkavor Group Dividends

  Latest Previous
  Final Interim
Ex-Div 25-Apr-24 14-Sep-23
Paid 29-May-24 13-Oct-23
Amount 4.37p 2.91p

Trades for 12-Jul-2024

Time Volume / Share Price
16:35 63,637 @ 156.00p
16:35 1 @ 156.00p
16:35 388 @ 156.00p
16:35 118 @ 156.00p
16:35 3,427 @ 156.00p

Bakkavor Group Key Personnel

CEO Mike Edward
CFO Ben Waldron

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