Australia's Graincorp jumps on upbeat forecast amid falling grain prices
16/02/2023 24:58
** Shares of Graincorp Ltd GNC.AX rise as much as 6.6% to
A$7.87, posting their biggest intraday pct gain since Oct 31
** Australian agribusiness firm expects to report FY23
EBITDA in the range of A$470 mln ($323.13 mln) - A$530 mln, the
midpoint of which is higher than consensus estimate of A$428 mln
** Co says guidance reflects large east coast Australian
winter crop and robust demand for Australian grain, among others
** RBC says GNC posted "good result in the face of a falling
grain price" but flags uncertainty beyond FY23
** RBC notes high inventory levels in part underpinning this
result, which is likely to revert
** "We continue to see downside risk beyond FY23 as
inventory levels reduce and the possibility of more 'normal'
growing conditions occur in Australia" - RBC
** Stock touches its highest since Dec. 20, among top
gainers on the benchmark .AXJO index
** YTD, GNC broadly flat
($1 = 1.4545 Australian dollars)
(Reporting by Savyata Mishra in Bengaluru)
((Savyata.Mishra@thomsonreuters.com))