Investec upgrades Origin Enterprises ahead of full year results

(ShareCast News) - Analysts at Investec upgraded their recommendation for Origin Enterprises to 'buy' from 'hold', and said its recent de-rating had overshot.The bank cut its price target for the stock to €8.40 from €8.60, ahead of Origin delivering full year results next month.Investec said despite the Ireland-based agri-services firm selling its stake in Valeo Foods, other acquisitions in Romania and Poland provided a solid base for sustainable growth in the mid to longer term."We believe that while not immediately earnings enhancing, the acquisitions provide a solid base for longer term growth in countries looking to promote large scale commercial agriculture."While selling its stake in Valeo had reduced earnings, Investec said the sale strengthened Origin Enterprises' balance sheet.Investec estimated Valeo would have net cash of €33.8m by the end of 2016 which would have enabled it to consider further substantial acquisitions.