ForFarmers appears to be an attractive investment in the long term, although the results in the first half of this year are probably disappointing. That is why analysts at KBC Securities have increased their advice for the share from hold to accumulate.

The market researchers are based, among other things, on the takeover policy at the cattle feed company from Lochem. The integration of the four recent acquisitions is proceeding according to plan, notes KBC.

The analysts do expect disappointing results with the half-year figures, because ForFarmers cannot fully pass on higher costs for logistics, energy and raw materials to farmers. It may therefore take some time before the share price shows recovery.

But for the longer term, the picture looks good. KBC is counting on a growing demand for food, in particular animal proteins such as meat, eggs and dairy products. This demand growth in the long term is a direct consequence of the growth of the world population and increasing prosperity. “ForFarmers is uniquely positioned to benefit from this,” said market researchers.

The target price remains at 8.50 euros. The ForFarmers share closed on Friday at 7.43 euros.

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