GNC - Morgans rates the stock as Add
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The company's FY18 operating earnings guidance was weaker than expected, on lower grain export guidance. EBITDA guidance is $240-265m, which is lower than the $390.1m recorded in FY17.
The company's export competitiveness has been affected by high global grain supplies in combination with Australia's high domestic grain prices. Morgans suggests investors should look beyond FY18, given the small east coast crop and difficult export conditions.
The broker retains an Add rating and reduces the target to $8.47 from $8.51.
Sector: Food, Beverage & Tobacco.
Target price is $8.47.Current Price is $7.64. Difference: $0.83 - (brackets indicate current price is over target). If GNC meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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