Costa Group has withdrawn guidance. Macquarie notes this comes despite the strong trading outcome in the March quarter. As seasonal conditions in Australia are better the concern is likely to centre on Europe.
Prior guidance was dependent on the extent of any coronavirus impact on the Chinese business. The broker is also cautious about strong competition for European demand. Underperform rating. Target is $2.78.
Sector: Food, Beverage & Tobacco.
Target price is $2.78.Current Price is $3.02. Difference: ($0.24) – (brackets indicate current price is over target). If CGC meets the Macquarie target it will return approximately -9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
