Australia's Graincorp on a roll but favourable conditions to ease - Morningstar
10/08/2022 20:48
** Morningstar says the good times are rolling for
Australian agribusiness firm Graincorp GNC.AX , but warns
longer-term crop handling will be less profitable
** GNC on Wednesday raised its fiscal 2022 profit forecast
for the second time as it benefits from strong demand for grains
and vegetable oils amid a supply crunch from the war in Ukraine
urn:newsml:reuters.com:*:nL4N2ZL4H8
** GNC is commanding "historically high supply-chain
margins", driven by back-to-back bumper crops in Australia and
supply shortages in the Northern Hemisphere, says Morningstar
equity analyst Angus Hewitt
** Morningstar raises its fiscal 2022 EBITDA forecast by 6%
** "We do not expect such favourable conditions to persist
... over the long run, Graincorp's value hinges on a normalised
crop-growing year - which won't be as lucrative," Hewitt warns
** Three of 11 brokerages rate the stock "buy" or higher,
seven "hold" and one "sell"; median PT is A$9.20
** Up to Wednesday's close, stock down 1.5% this year
(Reporting by Shashwat Awasthi)
((Shashwat.Awasthi@tr.com
mailto:Shashwat.Awasthi@thomsonreuters.com))