GNC – Morgans rates the stock as Hold

By Broker News | More Articles by Broker News

Morgans revises forecasts following the release of ABARES’ 2019/20 winter crop forecast. Another below-average east coast grain crop is expected, although it should be better than last year.

While extremely low carry-over grain will also impact FY20 Morgans expects the new derivative instrument will help.

Morgans maintains a Hold rating and raises the target to $8.04 from $7.57. The broker expects shareholders will require patience to ride out the poor seasons but the de-merger proposal will provide some support.

Sector: Food, Beverage & Tobacco.

Target price is $8.04.Current Price is $8.19. Difference: ($0.15) – (brackets indicate current price is over target). If GNC meets the Morgans target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).

Broker News

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →