Fonterra Shareholders Fund achieved the top end of guidance in FY20. Credit Suisse acknowledges the company still needs to make allowance for the pandemic-related uncertainty that is affecting the food services business.
Consumer markets in Hong Kong and Chile have been a drag on performance although improvement in FY21 guidance is still possible, the broker notes.
Credit Suisse would welcome more visibility on the investment required for the change in direction and the expectations for core growth products over the next five years. Neutral rating maintained. Target is raised to NZ$4.20 from NZ$3.97.
Sector: Food, Beverage & Tobacco.
Current Price is $3.73. Target price not assessed.