Following omicron impacts in WA and New Zealand, floods, and inflationary pressures that include higher grain prices, Inghams Group 3Q trading update was weaker than Morgans forecast.
The question the analyst poses going forward is: to what extent will price rises and the company’s continuous improvement program offset ongoing headwinds? Given the near-term earnings uncertainty, particularly around grain prices, the Hold rating is retained.
The target price falls to $3.09 from $3.62.
Sector: Food, Beverage & Tobacco.
Target price is $3.09.Current Price is $2.87. Difference: $0.22 – (brackets indicate current price is over target). If ING meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
