ARYZTA

Depressed valuation as the market awaits evidence of productivity programme

  • Sectors : Foods
  • Companies : ARYZTA

Ratings and price correct at time of issue.

  • ARYZTA

    Closing Price: 96.5c

  • RATING 03/06/15

  • PREVIOUS RATING 14/06/10

    OUTPERFORM

DAVY VIEW

Despite ongoing inflationary pressures and a tepid demand environment, we expect ARYZTA to reiterate FY guidance on March 12th (Davy model weighted to H2). The equity contract contains no silver bullet: a multi-year turnaround requires a multi-faceted organisational rebuild (underway) and a material uplift in operating productivity. Clarity over the group’s strategic direction is now in place. The equity will sensitise around the success or failure of Project Renew.

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Feb 15 2019, 06:30 GMT

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