Citi notes pricing for mushrooms has been unusually weak this year. This is Costa Group’s largest domestic product category. The weakness should abate in coming months but the broker remains cautious about forecasts.
Meanwhile the growth projects continue and the company remains favourably exposed to growth in fresh produce. Buy rating and $4.45 target maintained.
Sector: Food, Beverage & Tobacco.
Target price is $4.45.Current Price is $4.26. Difference: $0.19 – (brackets indicate current price is over target). If CGC meets the Citi target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).