Morningstar upbeat on Paine Schwartz's lower buyout bid for Costa Group

Costa group

18/09/2023 23:59

** Analysts at Morningstar say deal between Australia's
horticulture company Costa Group Holdings  CGC.AX  and U.S.
private equity firm Paine Schwartz likely to proceed
    ** Brokerage lowers fair value estimate of CGC to A$3.18 on
lower offer from Paine Schwartz 
    ** Says not surprised by lower bid as weather-related
headwinds add pressure on near-term outlook 
    ** "We think headwinds are likely to prove short-term and
continue to expect citrus quality to improve as the weather
normalizes" - Morningstar
    ** Expects rising input costs, especially in fertilizers and
labor, to continue to ease; while domestic fruit and vegetable
growth to be buoyed by population growth and consumption in the
longer term 
    ** YTD, CGC stock has risen 3.3% as of last close

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((Shivangi.Lahiri@thomsonreuters.com;))