Inghams Group’s profit was largely in line with consensus and guidance was reiterated. Strong momentum in New Zealand offset weakness in Australia. The broker remains concerned over poor cash flow conversion.
The biggest drivers from here are wheat prices, which are currently elevated, and contract wins amidst increasing competition. Neutral and $3.10 target retained.
Sector: Food, Beverage & Tobacco.
Target price is $3.10.Current Price is $3.48. Difference: ($0.38) – (brackets indicate current price is over target). If ING meets the UBS target it will return approximately -12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
