Credit Suisse believes pricing is not appreciated enough when it comes to Graincorp. Fees for receiving, storing and loading increased 3.5% to 4.0% for the 2021-22 season.
The outlook for the crop looks as good as the prior year and the broker upgrades forecasts to 28mt. Target is increased to $6.35 from $6.16. A Neutral rating is maintained on valuation although the broker acknowledges the upside risk.
Sector: Food, Beverage & Tobacco.
Target price is $6.35.Current Price is $6.60. Difference: ($0.25) – (brackets indicate current price is over target). If GNC meets the Credit Suisse target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
