GNC – Credit Suisse rates the stock as Neutral

Graincorp has issued a sizeable upgrade to FY22 guidance, now expecting earnings of $480-540m compared to Credit Suisse’s prior forecast of $405m and after-tax profit of $235-280m compared to the broker’s prior $189m.

Thr broker notes poorer northern hemisphere production is benefiting Australian grain exports, while potential export disruption driven by the Russia-Ukraine tensions could result in elevated grain marketing profitability.

Credit Suisse adjusts its forecasts accordingly, and expects Graincorp to finish FY22 with a cash balance of $207m, which could support a $1.00 per share special dividend.

The Neutral rating is retained and the target price increases to $7.17 from $6.78.

Sector: Food, Beverage & Tobacco.

 

Target price is $7.17.Current Price is $8.10. Difference: ($0.93) – (brackets indicate current price is over target). If GNC meets the Credit Suisse target it will return approximately -13% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →