In a preview of the March 24 investor day, Credit Suisse expects a greater focus on growth opportunities though investors may initially react adversely to increased capital requirements.
The February guidance of underlying earnings (EBITDA) of $230-270m and profit (NPAT) of $60-85m is unlikely to change as the main variables are dependent upon (pre-booked) export shipment timing and crush margins.
The Neutral rating and $5.06 target are unchanged.
Sector: Food, Beverage & Tobacco.
Target price is $5.06.Current Price is $4.51. Difference: $0.55 – (brackets indicate current price is over target). If GNC meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
