Source: Sharecast
Berenberg, which also lifted its target price on the stock to 6,080p from 5,770p, said Cranswick's Eye site - described as the most advanced poultry‑processing facility in Europe - showcased the scale of investment underpinning the group's position in UK food manufacturing.
The plant currently processes around 1.6m birds a week and was running at roughly 95% capacity, with additional capex set to lift output to 2m birds by April 2027. Management believes replicating Cranswick's footprint would cost around £2bn, highlighting the barriers to entry for competitors.
Berenberg highlighted a supportive demand backdrop, with UK poultry consumption expected to rise 3% to 4% a year and pork by 1% to 2%, while supply remains constrained.
The German bank also argued that consensus forecasts underestimate the returns from upcoming capex. Using historical pre‑tax return on capital expenditure assumptions, it estimates cumulative underlying earnings of £98m from the investment pipeline, compared with consensus expectations for £64m of EBIT growth between FY26 and FY30.
Berenberg also pointed to Cranswick's recent £200m planning application for further poultry capacity as a potential catalyst.
After a two‑year de‑rating, Berenberg said Cranswick now trades on 15.7x FY27 earnings, with the bank forecasting a three‑year earnings per share compound annual growth rate of 6%, rising to 10.7% if capex delivers group‑level ROCE within three years, alongside a 2.5% dividend yield and scope for a valuation re‑rating.
RBC Capital Markets downgraded Burberry on Tuesday to 'sector perform' from 'outperform' and cut its target price target to 1,200p from 1,400p.
RBC said Burberry was executing well in a challenging luxury environment, with improved product/price architecture, better instore merchandising for key categories and a clear and agreeable strategy.
"However, this strategy relies largely on volume and mix contribution with limited price, and we view the volume component as under incremental pressure given the luxury demand environment remains lacklustre," it said.
The Canadian bank also said consensus estimates anticipate a continuation of 5% to 6% revenue growth and 200 basis points EBIT margin expansion in FY29, which it considers too optimistic in the absence of additional cost reduction actions, such as store closures.
RBC Capital cut its FY28/29 earnings per share estimates by 6% to 8%, leaving it 7% to 11% below consensus expectations.
JPMorgan initiated coverage on Atalaya Mining on Tuesday with an 'overweight' rating and 1,330p target price, offering around 30% potential upside.
JPMorgan noted that Atalaya, one of the few pure-play European copper producers, offers scarce domestic exposure central to Europe's Critical Raw Materials agenda.
The bank pointed out that management was targeting a medium-term pathway to around 100k tonnes of copper equivalent production per year, primarily through the greenfield Touro project in Galicia and brownfield projects around Riotinto.
"ATYM offers a compelling combination of superior volume growth, low capital intensity, and a cheap valuation versus mid-cap copper peers which can support a re-rating as the group scales, in our view," it said. "ATYM could also benefit longer term from further consolidation in the Iberian Pyrite Belt as well as its initiatives in sulphide leaching."
JPM estimated that Atalaya currently trades on spot 4.5x/3.0x 2026/27E EV/EBITDA, well below its mid-cap copper peers.
Shore Capital initiated coverage of Ithaca Energy on Tuesday with a 'buy' rating and 340p target price, saying the firm has established itself among the largest remaining UK oil and gas producers after a decade of acquisition activity.
The broker said Ithaca has reached a scale where its portfolio can generate sufficient cash flow to fund stable - if not growing - production, while paying a roughly 8% dividend yield.
"Having endured a challenging UK fiscal and regulatory environment over the last five years, we believe Ithaca is strongly positioned to benefit from a more pragmatic UK energy policy," it said.
Shore also argued that major shareholders strengthen the investment case, saying the shareholdings of Israel's Delek Group and Italy's Eni - roughly 50.5% and 35.9%, respectively - limit Ithaca's free float to approximately 13.6% or $860m at the current share price.
"We view both major shareholders as long-term investors aligned with management's growth ambitions for the company," the broker said. "We believe the current shareholder structure has enhanced Ithaca's access to capital."
Shore said the support was proactive, with five nominated non-executives on the board and Ithaca able to leverage Eni's deeper technical capabilities to evaluate projects and acquisitions.