Greencore profits to fall, brokers warn

CONVENIENCE food group Greencore will be hit by lower earnings over the next two years due mainly to the rising cost of raw materials.

NCB Stockbrokers, in a review of the group’s prospects, has put a €1.20 price target on the stock for 2011, from an earlier forecast of €1.35.

Having reached a 52-week high of €1.48 in November 2010 as a result of the proposed merger with Northern Foods the share has lost traction since the merger deal blew up and the brokers warn severe price competition in the British retail sector will make it difficult for the company to recover rising costs.