Macquarie expects earnings momentum will continue into FY23, supported by another above-average east coast winter crop. Strong global demand for Australian grain and oilseeds along with supply chain margins for exports also underpin the business.
FY22 guidance has been reaffirmed for EBITDA of $590-670m and net profit of $310-370m. Further detail surrounding the strategy was included in the investor briefing with the company intent on enhancing the performance of existing assets.
Innovation is expected to drive the next round of growth amid opportunities in alternative protein, technology, animal nutrition and grower services.
Outperform rating and $11.10 target maintained.
Sector: Food, Beverage & Tobacco.
Target price is $11.10.Current Price is $9.54. Difference: $1.56 – (brackets indicate current price is over target). If GNC meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
