Tassal Group is benefiting from rising salmon sales prices and improving cash flows. Credit Suisse points out meaningful price increases have already occurred which should be more than enough to offset input price pressures.
The broker makes positive revisions to estimates for earnings per share while slightly reducing volume estimates in anticipation of the company maximising the supply/demand price dynamics. Outperform retained. Target rises to $4.00 from $3.90.
Sector: Food, Beverage & Tobacco.
Target price is $4.00.Current Price is $3.45. Difference: $0.55 – (brackets indicate current price is over target). If TGR meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
