• Mark Watson-Mitchell

NWF developing in the right way, says Shore Capital

Agricultural supplies distributor NWF (NWF) has a strong management team and is in a strong position to grow, says Shore Capital.


Analyst Akhil Patel retained his ‘hold’ recommendation on the stock after the distributor of fuel, food and feed reported a strong performance in all divisions in the past quarter, which was ahead of board expectations.


The stock currently trades on 11.9x next year’s earnings and a 3.3% dividend yield, according to the analyst.


‘At this moment, we see NWF’s valuation as fair at present, in line with its two-year average price/earnings ratio of around 11x. That said, we believe the company has a strong management team and is in a very good position following prior and continued investment across the business,’ he said.


Patel added that the company is focusing on ‘strategic development’, including acquisitions in fuels given its strong balance sheet and banking facilities, which should ‘strongly position the group’.


The shares were trading flat at 246p on Friday afternoon.


Source: citywire.co.uk

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