CGC – Credit Suisse rates the stock as Outperform

The company has maintained 2020 guidance for earnings of $150m (EBITDAS). Improved prices are expected to enable the mushroom produce division to recover some growth.

Citrus has been downgraded slightly on the prospects of smaller crops. Berry forecasts are unchanged.

Credit Suisse notes some forecast risk from coronavirus, which has affected the logistics of moving fruit to market although the peak harvest is in March and bottlenecks have improved.

Outperform rating maintained. Target is raised to $3.50 from $3.40.

Sector: Food, Beverage & Tobacco.

Target price is $3.50.Current Price is $2.90. Difference: $0.60 – (brackets indicate current price is over target). If CGC meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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