Jefferies, Morningstar cut GrainCorp FY26 outlook on likely dip in harvest volumes

Graincorp

17/12/2025 19:32

** Analysts at Jefferies lower price target for Australia's GrainCorp GNC.AX to A$9.00 from A$9.30; reiterates 'buy' rating

** Graincorp expects FY26 receival volumes of 11-12 million tons vs 13.3 million tons in FY25

** Moreover, co is selling its GrainsConnect Canada JV for C$150 million ($108.77 million)

** Jefferies trims GNC margins for FY26 and beyond, decreased grain receivals in FY26; downgrades EPS outlook by 15%, 10% and 4% for FY26, FY27 and FY28, respectively

** Brokerage says a break in near record global grain output could drive GrainCorp's margins upwards

** While Morningstar cuts FY26 EBITDA for agribusiness firm by 7% to A$308 million ($203.28 million), flat on FY25

** As of last close, GNC down 1% YTD

($1 = 1.3790 Canadian dollars)

($1 = 1.5152 Australian dollars)

 (Reporting by Keshav Singh Chundawat in Bengaluru)

 ((Keshav.singhchundawat@thomsonreuters.com))