First half results were weak, down -29%, and there were a number of volume and margin issues, Macquarie observes. While the company has reduced full-year guidance, the broker suspects the midpoint may still be challenging.
Macquarie finds it unclear as to what the new normal earnings base is, given one-off issues/structural changes. However, the stock is not assessed as cheap, particularly given the extreme volatility in earnings.
Underperform rating and target price reduced to NZ$4 from NZ$5.
Sector: Food, Beverage & Tobacco.
Current Price is $4.13. Target price not assessed.
