Highlights

  • Davy issues an Outperform rating on Greencore with a target price of GBX 325.
  • Investec maintains a Buy rating with a target price of GBX 300 following FY25 results.
  • Greencore shares have risen 49.92% over the past year as at 20 January 2026.

Greencore Group plc (LSE:GNC) continues to attract positive broker attention, with stockbroking firm Davy has issued an Outperform rating on Greencore, assigning a target price of GBX 325, indicating expectations of further share price upside relative to the broader market.

Separately, Investec Bank plc has reaffirmed its Buy rating on the stock, maintaining a target price of GBX 300. The broker’s stance might follow Greencore’s FY25 earnings release and progress on its proposed acquisition of Bakkavor Group plc.

Notably, Greencore’s share price has increased by 49.92% over the past 12 months, as at 20 January 2026.

FY25 Results Provide Financial Backdrop

For FY25, Greencore reported group revenue of GBP 1,947 million, representing 7.7% growth year-on-year, driven by underlying volume increases, new customer wins, and pricing dynamics.

Adjusted EBITDA rose 17.9% to GBP 181.2 million, while group operating profit increased 19.9% to GBP 101.1 million. Adjusted operating profit came in at GBP 125.7 million, up 28.9%, and basic earnings per share increased 30.7% to GBX 13.2.

The board proposed a total dividend of GBX 2.6 per share, a 30% increase from the previous year’s payout of GBX 2.0 per share.

Cash Flow and Balance Sheet Position

Greencore generated free cash flow of GBP 120.5 million during the year and reported net debt of GBP 70.1 million, excluding leases. This compares with net debt of GBP 148.1 million in the prior year, reflecting improved cash conversion and debt reduction.

Strategic Developments: Bakkavor Acquisition

The company’s recommended acquisition of Bakkavor Group plc remains on track for completion in early 2026, subject to regulatory approvals. Under the proposed terms, Bakkavor shareholders will receive a combination of Greencore shares and cash, valuing Bakkavor at approximately GBX 200 per share.

As part of the Competition and Markets Authority review process, Greencore plans to divest the Bristol chilled soups and sauces manufacturing facility.

Broker Outlook Anchored in Execution

The Outperform rating from Davy and Buy recommendation from Investec collectively highlight broker focus on Greencore’s earnings delivery, dividend growth, cash flow profile, and execution of strategic initiatives. These factors continue to shape analyst assessments of the stock as FY26 approaches.