Credit Suisse highlights Huon Aquaculture has been impacted by lower global salmon prices due to higher sales channel skew to exports.
Also, through higher production into the domestic wholesale channel, the group is more exposed to weakness in food service and restaurant channels.
The broker expects the current pressures to be temporary with strong earnings growth expected in FY22-23.
Neutral rating retained with a target of $2.90.
Sector: Food, Beverage & Tobacco.
Target price is $2.90.Current Price is $3.06. Difference: ($0.16) – (brackets indicate current price is over target). If HUO meets the Credit Suisse target it will return approximately -6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
