Citi ponders the question: Could new crop premiums head higher? After weighing industry sources on crop standards and the prevailing price, the broker concludes prices are expected to fluctuate around current levels as the harvest progresses.
Potential drought impacts (e.g. smaller kernel sizes) are likely to result in lower yields, thinks the analyst. Citi retains its Buy rating and $8.10 target price.
Sector: Food, Beverage & Tobacco.
Target price is $8.10.Current Price is $7.89. Difference: $0.21 – (brackets indicate current price is over target). If SHV meets the Citi target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
