The Share Centre upgrades Booker to a ‘buy'

Sheridan Admans, investment research manager at The Share Centre, upgrades Booker to a ‘buy' for growth seeking investors.
 
"Booker's recent full year results were strong with upbeat news that its plan to broaden the business is going well. Its recently launched Chef Direct operation has been awarded some prestigious contracts and it finally got regulatory approval to acquire Makro UK, while cementing its strategic alliance with Metro AG, a major shareholder. Investors will also be pleased to hear of a hike in the dividend.
 
"The company has delivered a strong performance since the new management took over. The Makro deal provides a good growth opportunity for Booker and the company has given a strong indication that further growth opportunities look attractive.
 
"We believe the long-term fundamentals of Booker look sound and it offers a good growth opportunity for investors in light of the deal to take over the UK Makro operation and expand its consumer base and product range. We have upgraded our ‘hold' recommendation to a ‘buy' now that there has been clearance of the Competition Commission over the proposal."