Source: Sharecast
"While individuals will not be able to enjoy a meal indoors until 17 May, we see the upcoming spring months as a turning point for demand for food to go (FTG) as a convenient option for people to consume food as they start socialising outdoors," HSBC said.
The bank said that while the government has not ruled out reintroducing restrictions at a local level if needed, the initial stage can be compared to the market conditions seen in October 2020.
"At that time, Greencore’s FTG sales were still down 22% year-on-year but at a much better level versus Q4 20 (-29% year-on-year) and versus January 2021 (-35% year-on-year).
"We therefore see the announced roadmap as a set timetable and an opportunity for Greencore to start building back its FTG business and leveraging its improved supply chain as well as existing and new business opportunities."
As a result of improved visibility on a return to normality, downside risk to Greencore’s earnings "reduces markedly", HSBC said.
At 0940 GMT, the shares were up 6.3% at 157.25p.