Fall in Australia's Costa Group shares on CEO departure was overdone - Morningstar

Costa group

26/09/2022 19:45

** Morningstar says the drop in Costa Group's  CGC.AX  share
price after CEO resigned was unwarranted 
    ** Fruit grower announced on Monday its CEO and managing
director Sean Hallahan will step down with effect from Sept. 26 
    ** CGC tumbled 14.2% on Monday and was the top loser on the
benchmark index  .AXJO  
    ** Morningstar says CGC remains in familiar hands with Harry
Debney stepping in as acting CEO; expects an orderly transition
    ** Anticipate little change in company strategy in the short
term - Morningstar
    ** In the longer term, brokerage expects low- to
mid-single-digit domestic fruit and vegetable growth 
    ** Seven of 13 analysts rate the stock "buy" or higher, six
"hold"; their median PT is A$3.12 – Refinitiv Eikon data 
    ** YTD stock has dropped 28.1%, as of last close 
 (Reporting by Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))