Credit Suisse suggests the view on Costa Group being an agricultural stock is fading and the growth prospects are returning to favour. Earnings in the second half are expected to be driven by the rest of the citrus harvest, the main berry season in Australia, mushrooms and tomatoes.
Most of the remaining production is undercover and there is plenty of water. The broker retains an Outperform rating and raises the target to $3.60 from $3.50.
Sector: Food, Beverage & Tobacco.
Target price is $3.60.Current Price is $3.31. Difference: $0.29 – (brackets indicate current price is over target). If CGC meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).