Morningstar says Costa Group's headwinds are likely to prove short-term

Costa group

31/08/2023 22:11

** Analysts at Morningstar say Costa Group's  CGC.AX  strong
growth in Chinese blueberries more than offsets domestic
weakness; maintains fair value estimate at A$3.40
    ** Says we continue to think the indicative proposal from
Paine Schwartz Partners is more likely than not to proceed
    ** Brokerage says combined with high industry-wide supply,
pricing is set to remain subdued
    ** "We think headwinds are likely to prove short-term and
continue to expect citrus quality to improve as the weather
normalizes" - brokerage
    ** We expect further growth in the international segment
from fiscal 2024 following additional new plantings, mostly in
China, Morningstar says
    ** Costa's near-term growth is largely driven by the ramp-up
of expansionary projects, which is capital-intensive - Brokerage
    ** Stock had risen 3.64% YTD, as of last close 
    
    


 (Reporting by Aishwarya Nair in Bengaluru)
 ((Aishwarya.Nair@thomsonreuters.com; +91-9167838937 Twitter: https://twitter.com/Aishwaryartrs
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