Greencore stock set to ‘outperform’

Davy Stockbrokers has ditched its long-held ‘neutral’ rating on the Greencore stock and upgraded to ‘outperform’, saying the US market could provide significant long-term growth potential for the Dublin-headquartered convenience food giant.

In a detailed report on the company, published yesterday, Davy said that “enhanced cash conversion, an improved UK business, and a US platform poised for sustainable growth catalyse a move to ‘outperform’”.

Greencore is still headquartered here, but now has its shares listed in London, on the FTSE All-Share and Small Cap Indices. It said tough trading conditions were continuing, but that it expected to meet its main financial targets for its current financial year, despite the horsemeat scandal knocking around £6m/€7m off its revenues in the year to date.