Foods

Strong trading through October prompts further earnings upgrade

  • Sectors : Foods
  • Companies : Total Produce | Dole plc

Ratings and price correct at time of issue.

  • Total Produce

    Closing Price: 130c

  • RATING 14/05/10

  • PREVIOUS RATING 30/06/09

    NEUTRAL

DAVY VIEW

Total Produce’s (TP) trading update highlights continued positive operating performance through to the end of October, with key financial metrics now expected to be ahead of FY 2019. Sales and profit growth through 2020 are stand-outs across our coverage and underscore the relevance of TP’s business model and resilience of the fresh produce category. On first glance, we will increase our FY 2020E EPS forecast by c.4-5%.Trading on just 9x EPS, we see (1) earnings momentum, (2) the value-growth trade rotation and (3) strong ESG credentials as catalysts for the equity, and we reiterate our ‘Outperform’ rating on the stock.

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Nov 23 2020, 07:15 GMT

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