Deutsche Bank lifts Premier Foods stock target to GBP2.30

Published 19/05/2025, 16:54
Deutsche Bank lifts Premier Foods stock target to GBP2.30

On Monday, Premier Foods Plc (LON:PFD:LN) (OTC:PFODF) saw its price target increased by Deutsche Bank (ETR:DBKGn) from GBP2.10 to GBP2.30, while the firm maintained a Buy rating on the stock. Deutsche Bank’s analyst Damian McNeela highlighted the company’s fiscal year 2025 results as a demonstration of significant progress across its strategic growth initiatives.

According to McNeela, Premier Foods has successfully grown its core business segments, with Branded Grocery and Branded Sweet Treats in the UK showing robust performance. The company reported an 8% increase in Branded volumes and a 4.4% rise in revenue. Additionally, Premier Foods has made notable distribution gains within the UK market.

Investments in supply chain capabilities were also emphasized, with capital expenditures reaching £41 million in FY 2025. Management anticipates a rise to £50 million as it focuses on fast payback and high-return projects to enhance efficiency.

The expansion into new categories has yielded positive results, with Ambrosia Deluxe (NYSE:DLX) experiencing a 45% growth and Mr Kipling Signature bites seeing a remarkable 78% increase. These new product lines have contributed to the company’s overall growth trajectory.

Lastly, Premier Foods’ international expansion strategy has been successful, with all regions delivering double-digit revenue growth. The analyst expressed high confidence in the company’s ability to sustain this growth moving forward. The increased price target reflects the positive outlook based on the company’s recent performance and strategic advancements.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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