Total Produce

COVID-19 update highlights resilience of model

  • Sectors : Foods
  • Companies : Total Produce

Ratings and price correct at time of issue.

  • Total Produce

    Closing Price: 79.7c

  • RATING 14/05/10

  • PREVIOUS RATING 30/06/09

    NEUTRAL

DAVY VIEW

Total Produce’s trading update highlights the resilient and defensive nature of its operating model. While it has modestly lowered full-year expectations, this is a strong performance against an unprecedented macro backdrop. Trading on just 5.6x trailing earnings, the equity is materially dislocated from its fundamentals. The group has ample liquidity and headroom over covenants while its supply chains remain fully operational. Geographic, category and channel diversification continues to benefit the group. We will pare our FY 2020 EPS by c.7-8%.

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Mar 27 2020, 09:20 GMT

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