We initiate on Fevara, a pure-play livestock nutrition specialist, with a BUY and TP 181p. Its core products are a patented range of low-moisture blocks (LMBs), palatable, mineral and vitamin-rich molasses blocks that deliver a measurable ROI for farmers. Over the last 12 months, a focus on higher-margin core products, restructuring of loss-making operations, and operational efficiencies has led to an inflection in profitability. With scope for market share gains in the UK/US and the longer-term growth opportunity in Brazil (~£2.6bn TAM), we have confidence that management can deliver its medium-term (2031) ambition of >£120m revenue and >£15m EBITDA. Our valuation is based on 10x CY27 EV/EBITDA, underpinned by a DCF.
