Credit Suisse acknowledges the pandemic has had a greater impact on the company’s operations than previously allowed for but the FY20 result still highlighted resilience in overall poultry demand.
Adding to this, better feed costs are expected in FY22 as rain/crop indicators continue to support lower wheat prices. Still, FY21 earnings are expected to be depressed. Outperform retained. Target is steady at $3.95.
Sector: Food, Beverage & Tobacco.
Target price is $3.95.Current Price is $3.39. Difference: $0.56 – (brackets indicate current price is over target). If ING meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
