Shares in Origin Enterprises, the provider of animal feed, fertilisers and agri-services, were upgraded by investment firm Investec to outright "buy" on Tuesday amid a recovering market for its products and as the company increases acquisition spend.
Origin shares gained as much as 3.4 per cent in early trading to €6.90. However, they dipped by over 1 per cent in late trading, as European markets sold off towards the close.
Investec analyst Ian Hunter, who previously had a "hold" rating on the company, also raised his earnings forecasts and share price target on the stock by 30c to €7.30.
Brexit negotiations
“We believe that the underlying agricultural environment has been improving over the past six months and the agri-services sector, including Origin, is recovering,” said Mr Hunter.
“While the unknown impact of Brexit negotiations may augur some short-term caution, we believe that the risk to numbers going forward is to the upside.”
After four years of relative inactivity, Origin Enterprises spent €62.5 million last year on three businesses and has since committed a further €39.1 million on deals, according to Mr Hunter.
The analyst estimates that Origin has the balance sheet strength to spend up to €100 million in its financial year to the end of July 2018.
