Post profit warning, Macquarie analysts stick with the view this company remains solidly positioned with (still) a solid track record, though the latest market update must have come as an unwelcome surprise.
Macquarie was previously of the view everything was looking swell and solid from an operational point of view. Its own forecast was for double digit percentage growth, well above company guidance and certainly well above yesterday’s update for a flat outlook for the present year.
Apparently, demand for tomatoes, berries and avocados during December 2018 disappointed, while January too is growing below expectations. Estimates culled by -8-15%. Target price drops to $5.55 from $7.60.
Sector: Food, Beverage & Tobacco.
Target price is $5.55.Current Price is $4.51. Difference: $1.04 – (brackets indicate current price is over target). If CGC meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).