Credit Suisse assesses Ridley is generating a reliable record of delivery on its strategy. Optimisation has started to yield benefits and the broker is also comfortable with the organic growth story. First half operating earnings were ahead of estimates, up 16.5%.
As the valuation is undemanding and there is increasing conviction in the medium-term growth profile, Credit Suisse upgrades to Outperform from Neutral and raises the target to $1.15 from 85c.
Sector: Food, Beverage & Tobacco.
Target price is $1.15.Current Price is $1.06. Difference: $0.09 – (brackets indicate current price is over target). If RIC meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
