RBC Capital upgrades Cranswick to 'outperform', hikes price target

(Sharecast News) - RBC Capital Markets upgraded Cranswick on Wednesday to 'outperform' from 'sector perform' as it said that following a recent site visit and strong FY26 delivery, it is confident the company's competitive advantages are durable and growing.

"Vertical integration - from genetics to shelf - gives the group control over costs, quality and traceability, driving premiumisation and creating a business that is nearly impossible to replicate," the bank said.

"Record capital is being deployed from free cash flow, with return on capital employed held at a high 18.5%, with sticky partners set to take new volumes, driving share gains, with potential for further operating margin growth."

RBC upgraded forecasts by 4-5% at the adjusted EBIT level, primarily reflecting stronger margin guidance for FY27. It is now around 2% to 2.5% ahead of consensus across its forecast period.

The bank hiked its price target on the stock to 6,100p from 5,500p.

At 1030 BST, Cranswick shares were up 0.9% at 5,446p.

Cranswick