FSF – Macquarie rates the stock as Underperform

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First half results were weak, down -29%, and there were a number of volume and margin issues, Macquarie observes. While the company has reduced full-year guidance, the broker suspects the midpoint may still be challenging.

Macquarie finds it unclear as to what the new normal earnings base is, given one-off issues/structural changes. However, the stock is not assessed as cheap, particularly given the extreme volatility in earnings.

Underperform rating and target price reduced to NZ$4 from NZ$5.

Sector: Food, Beverage & Tobacco.

Current Price is $4.13. Target price not assessed.

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