Wincanton Rises on Valero Deal to Transport Fuel: London MoverNatasha Doff
Wincanton Plc climbed 3 percent after the transporter of products ranging from groceries to cement extended a contract with the largest independent petroleum refiner, Valero Energy Corp., for five years.
Wincanton will transport more than 2 billion liters (528 million gallons) of fuel a year to more than 1,000 U.K. locations under the deal, the company said in a statement today. Wincanton, which supplies logistics and transport services to customers including Tesco Plc, Britain’s biggest supermarket chain, and Marks & Spencer Group Plc, the U.K.’s largest clothing retailer, rose 3 pence to 103.25 pence in London.
“We like Wincanton because there’s significant recovery potential in it,” Steve Woolf, an analyst at Numis Securities, said by phone. “Contract renewals and increasing scope of work with their customers is positive for the business longer term.” Woolf recommends buying the shares and has a target price of 120 pence for the stock.
Under Chief Executive Officer Eric Born, Chippenham, England-based Wincanton, has won extended contracts in the past six months with clients including William Morrison Supermarkets Plc and cement company Cemex. Wincanton returned to profit in the fiscal year through March following two years of losses.
The share price has more than doubled in 12 months, giving the company a market value of about 126 million pounds ($202 million). Of five analysts who follow the company and share their findings with Bloomberg, four recommend buying the stock and one suggests selling.