GrainCorp’s interim result was largely in-line with Morgans expectations and management reiterated guidance.
The broker upgrades its grain Marketing and Processing earnings in the belief it will take time for global grain stocks to rebuild. It is thought stocks could even worsen, given the Ukraine war.
As a result, the analyst raises its FY23 earnings (EBITDA) and profit estimates by 14.8% and 18.2% and the target price increases to $10.40 from $9.36. Hold.
Sector: Food, Beverage & Tobacco.
Target price is $10.40.Current Price is $10.46. Difference: ($0.06) – (brackets indicate current price is over target). If GNC meets the Morgans target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).