How The Horsemeat Scandal Could Benefit Wm. Morrison Supermarkets plc (WRM)

For with its farm-to-fork supply chain, Morrisons can be more assured than most that horsemeat isn’t entering its supply chain. The challenge ahead: persuading fastidious customers of upmarket outlets such as Waitrose and J Sainsbury that Morrisons should be their meat products purveyor of choice.

Upside
On a P/E that’s currently a fair bit below the market average, and with movement afoot in terms of the Blockbuster and Lakeland deals, I reckon that Morrisons has probably more upside than downside. Factor in a boost from the horsemeat scandal — assuming the business has the marketing nous to leverage it — and that upside could be considerable.

Heck, even if Morrison’s were simply to reach the FTSE 100’s average P/E, that still implies a 30% uplift on today’s share price.

The article How The Horsemeat Scandal Could Benefit Wm. Morrison Supermarkets originally appeared on Fool.com and is written by Malcolm Wheatley.

Malcolm owns shares in Tesco and J. Sainsbury, but not in any other companies mentioned here. The Motley Fool owns shares in Tesco.

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