Cranswick (LSE:CWK) shares advanced on Tuesday after Berenberg upgraded the food producer to “buy” from “hold” and increased its price target to 6,080 pence from 5,770 pence, citing planned investment in poultry production and its expectations for UK meat demand.
The shares rose 1.4% to 5,170 pence, their highest level in more than a week, while the FTSE 250 gained 1.18% in the latest available session.
The broker’s revised assessment followed an investor visit to Cranswick’s poultry facility in Eye, Suffolk, on 15 September.
Berenberg highlighted the company’s planned capacity expansion and potential for further investment, although it noted that the timing of a proposed second poultry-processing facility remains uncertain.
Berenberg Raises Price Target to 6,080 Pence
Berenberg increased its price target for Cranswick to 6,080 pence from 5,770 pence and upgraded its investment rating from “hold” to “buy”.
The change followed a visit to the company’s Eye poultry-processing facility with investors on 15 September.
According to Berenberg, the visit demonstrated Cranswick’s position in the poultry market and the potential benefits of additional production capacity.
The broker cited the company’s investment programme and its expectations for demand growth as factors supporting its revised outlook.
This was Berenberg’s first rating change for Cranswick in the past 12 months. The broker had previously assigned a “hold” rating and a 5,770-pence price target in November 2025.
Shares Reach Highest Level in More Than a Week
Cranswick shares increased 1.4% to 5,170 pence following the upgrade.
The price represented the stock’s highest level in more than a week.
The broader FTSE 250 index was up 1.18% during the latest available session.
The share price movement followed Berenberg’s revised rating and price target, although broader market conditions may also have influenced trading.
The broker’s new price target represents its assessment of the shares rather than a guaranteed future valuation.
Eye Poultry Facility Operating at 95% Capacity
Cranswick’s Eye facility in Suffolk currently processes approximately 1.6 million birds per week.
The plant is operating at around 95% of its existing capacity.
The company plans to invest a further £56 million to expand weekly processing capacity to 2 million birds.
The expansion is expected to be completed by April 2027, followed by a ramp-up period of approximately 12 to 18 months.
The investment would increase the facility’s processing capacity by 400,000 birds per week once fully implemented.
The timing of the additional production contribution will depend on completion of the expansion and the subsequent operational ramp-up.
Poultry and Pork Demand Expected to Increase
Berenberg expects UK poultry demand to grow by approximately 3% to 4% annually.
The broker also forecasts annual growth of 1% to 2% in pork demand.
It said constraints on industry supply could provide opportunities for Cranswick to increase production volumes.
Berenberg expects the company’s capital investment programme to support volume growth of at least the mid- to high-single-digit range.
These figures represent the broker’s forecasts and are subject to changes in consumer demand, industry supply and operating conditions.
The planned expansion at Eye is one of the investments identified by Berenberg as a potential contributor to future production growth.
Proposed £200 Million Grimsby Facility Remains Subject to Planning
Berenberg also highlighted Cranswick’s potential development of a second poultry-processing facility near Grimsby.
The proposed project would involve an investment of approximately £200 million.
Cranswick has submitted a planning application for the facility, but the timing of the development remains uncertain.
Berenberg has therefore excluded any contribution from the proposed plant from its financial forecasts.
The project could provide additional processing capacity if it proceeds, although its development remains dependent on the relevant approvals and investment decisions.
No construction timetable or expected operational start date was provided in the supplied report.
Valuation and Earnings Expectations
Berenberg said Cranswick’s shares were trading at approximately 15.7 times expected FY2027 earnings.
That compares with a valuation of around 19 times earnings two years earlier.
The broker linked its revised assessment to Cranswick’s investment programme and the potential for additional production volumes.
It also identified the company’s returns profile as a factor in its expectations for future earnings growth.
The valuation multiples and earnings outlook are based on Berenberg’s estimates rather than confirmed future results.
Outlook
Cranswick’s planned £56 million expansion at Eye is expected to increase processing capacity from approximately 1.6 million to 2 million birds per week, with completion targeted for April 2027.
The company anticipates a further 12- to 18-month period to ramp up the expanded facility.
Berenberg expects growth in UK poultry and pork demand to support the company’s investment plans, while its forecasts exclude the proposed £200 million Grimsby facility because of uncertainty over timing.
Following its review, the broker raised its price target to 6,080 pence and upgraded its rating to “buy”, with future performance dependent on demand conditions, capacity expansion and the execution of Cranswick’s investment programme.
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