Morgan Stanley initiates Australia's Bega Cheese with 'overweight', shares rise
22/05/2026 06:01
** Morgan Stanley initiates coverage of Australia's Bega Cheese BGA.AX with an "overweight" rating and an A$6.70 price target saying demand tailwinds, along with cost efficiencies, support attractive earnings growth ** Says protein and GLP-1 demand trends lift demand and pricing power for co's yoghurt and milk-based beverages ** Adds co's restructured bulk business, while still cyclical, is leaner and more geared to higher-value categories ** MS forecasts 20%+ EPS CAGR over FY25-28e, driven by branded mix improvement and supply chain consolidation ** Flags fuel and resin availability, and dairy price volatility as key downside risks ** BGA up 2.8% to A$5.425, hitting their highest since May 4 ** Stock down over 10% YTD (Reporting by Shruti Agarwal in Bengaluru) ((Shruti.Agarwal@thomsonreuters.com))
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