First half results revealed organic EBITDA erosion offset the new acquisition. Credit Suisse also notes that management has indicated that prior period contract losses have now been fully absorbed and dairy industry volumes are bottoming.
The broker does not factor in further acquisitions. Neutral rating retained. Target is raised to $6.65 from $6.30.
Target price is $6.65.Current Price is $6.66. Difference: ($0.01) – (brackets indicate current price is over target). If PGH meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).