DAVY VIEW

Total Produce’s trading update underscores the resilience of its operating model, with interim revenues now expected to be broadly in line with 2019 – c.3% ahead of our expectations. Recognising the unprecedented economic backdrop and the group’s exposure to locked-down (food service) channels, this is a notably strong performance and provides comfort for our full-year forecasts. Trading on less than 9x FY 2020 P/E, the stock is materially mis-priced. We reiterate our ‘Outperform’ rating.