March has been a good month for the UK-based wholesale food retailer, following the Competition Commission’s findings on its acquisition of the Makro chain. Once the final clearance for this was given, a plethora of institutional analysts upgraded their price targets for the company. A benefit of this review allows Booker Group to decide whether they wish to dispose of any of the 30 sites they have acquired, rather than having any demands placed upon them.
Although shares in the food retailer are broadly at the same levels they started the year at, they are still above the supportive trend the company has enjoyed for the last six years. With press coverage of food companies focusing on price wars following WM Morrisons comments, the shares have oscillated either side of the 50- and 100-day moving average. Any intraday dips below the 160p level have seen the buyers creep back in, with 150p below looking like another area of support.
The market expectation for the company is that annual earnings per share will be 0.54. This will be helped by a £0.7 billion increase in annual sales and a 15% plus improvement in operating profits.