Source: Sharecast
In an update for the four months to the end of October, Genus said trading in PIC (porcine genetics) remained strong, with every region achieving royalty revenue and adjusted operating profit growth.
The division performed particularly well in China, with strong royalty revenue growth being a key driver.
However, adjusted operating profit in ABS - the bovine genetics segment - has been slightly lower than expected due to phasing. Genus said it expects a step-up in performance in the second half.
Chief executive Jorgen Kokke said: "Genus has made a strong start to the year with PIC continuing to demonstrate its robust growth model.
"ABS profit performance has been slightly lower than expected but we expect stronger performance in the second half. We look forward to the rest of the year with confidence."
At 1345 GMT, the shares were up 8.2% at 2,570p.
House broker Panmure Liberum, which rates the stock at 'buy' with a 3,500p price target, said: "We’ve upgraded our PBT forecast by just under 5% to £84.2m but left our FY27E and beyond forecasts largely unchanged, preferring to remain cautious at this stage.
"Furthermore, the fact that Genus is willing to upgrade expectations this earlier in the year suggests that there may be more to come."