DAVY VIEW

Following an extended phase of volatility, management at Greencore implemented a series of strategic commercial and operational initiatives focused on stabilising profits, recovering margins and fostering growth in revenue and cash flows. The multi-horizon approach seeks to return Greencore to pre-COVID profitability (c.£106m) by c.FY26, which we believe is very attainable. Tangible progress has already been made – we believe the equity is unfairly discounting future progress. We change our rating from ‘Neutral’ to ‘Outperform’ with a new price target of 140p (c.11% upside).