DAVY VIEW

Following its recent trading update and third consecutive upgrade, we are raising our adjusted operating profit numbers for FY24 and FY25 by 7.6% and 5% respectively. We now forecast Greencore to return to absolute pre-COVID profitability (£106m) by the end of FY25. We posit its current valuation does not fully reflect the quality of its self-help delivery, nor its tangible path towards further growth in returns and profitability. We maintain our ‘Outperform’ rating and increase our share price target to 250p (c.17% upside).