Citi assesses expectations are low leading into the FY19 results on September 30. The shares are down -27% in the year to date, sharply underperforming the broader market.
The broker believes attention will be on the guidance provided for FY20, where consensus estimates are forecasting a 19% rebound in operating earnings (EBITDA).
Following the incremental improvement in the balance sheet after the placement to Sumitomo, and with Omega-3 commercialisation on track, Citi retains a Buy rating. Target is $6.
Sector: Materials.
Target price is $6.00.Current Price is $4.38. Difference: $1.62 – (brackets indicate current price is over target). If NUF meets the Citi target it will return approximately 27% (excluding dividends, fees and charges – negative figures indicate an expected loss).
