Jefferies raises Costa Group PT on likely lower costs in FY23

Costa group

31/08/2022 23:44

** Jefferies raises price target on Australian horticulture
company Costa Group Holdings Ltd  CGC.AX  to A$2.95 from A$2.90;
maintains "hold" rating
    ** FY23 should see cost inflation alleviate, no expected
carryover of Citrus quality issues - Jefferies
    ** Says CGC's half-yearly revenue of A$709 mln ($485.03 mln)
was in-line with brokerage's estimates while EBITDA of A$140 mln
missed by ~5% 
    ** Expects returns on capital employed to remain volatile
and within 8%-14% in the foreseeable future 
    ** Eight of 13 analysts rate the stock "buy" or higher, five
"hold"; their median PT is A$3.15 – Refinitiv data
    ** Stock has fallen 11.2% this year


($1 = 1.4618 Australian dollars)

 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))