Morgans revises forecasts following the release of ABARES’ 2019/20 winter crop forecast. Another below-average east coast grain crop is expected, although it should be better than last year.
While extremely low carry-over grain will also impact FY20 Morgans expects the new derivative instrument will help.
Morgans maintains a Hold rating and raises the target to $8.04 from $7.57. The broker expects shareholders will require patience to ride out the poor seasons but the de-merger proposal will provide some support.
Sector: Food, Beverage & Tobacco.
Target price is $8.04.Current Price is $8.19. Difference: ($0.15) – (brackets indicate current price is over target). If GNC meets the Morgans target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
