Boparan - Brexit Hedge?

All,

Please find our new analysis on Boparan here.

We have not yet taken a position in Boparan.

The company’s core business is under pressure since the supermarket chains - lead by Tesco’s - have pressed hard on prices. Thus it is financing its turnaround with the sale of its branded businesses. Even if those sales are successful, it needs tio find another £20m of EBITDA in its Chicken division.

However, the company still has some time to do that and crucially Britain imports one in three chicken. Should borders close therefore, would the 20% market share behemoth be able to negotiate better prices with supermarkets again? Maybe, but it will likely first trade down with everyone else. Perhaps it's one to buy after Brexit.

Wolfgang