As Inghams Group failed to quantify its performance to date at the AGM, but warned about feedgrain prices remaining above expectations, Citi analysts see risks to the FY22 gross margin.
The positive offset is that extended lockdowns have impacted and consumer spending should recover from here onwards. Increased sales through supermarkets during lockdowns will be a positive for overall volumes, but a negative for average price received, points out Citi.
Target remains $4.55 with an unchanged Buy rating.
Sector: Food, Beverage & Tobacco.
Target price is $4.55.Current Price is $3.54. Difference: $1.01 – (brackets indicate current price is over target). If ING meets the Citi target it will return approximately 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
