Jefferies sees upbeat FY23 profit for Australia's Graincorp
14/11/2023 20:32
** Jefferies expects Australian agribusiness Graincorp Ltd
GNC.AX to report FY23 profit at the top end of its forecast
** Brokerage sees FY23 net profit after tax of A$252 mln
($163.75 mln), towards the top end of company's A$220-260 mln
forecast range
** With climatic conditions deteriorating in East Coast
Australia as El Niño progresses, "we're expecting declining
grain volumes into FY24/25" - Jefferies
** The stock will struggle to perform as Australia's
agriculture conditions worsen - brokerage
** But Jefferies raises PT by 25% to A$9.15 considering past
underperformance of the stock
** GNC is scheduled to report its FY23 results on Nov. 16
** Four of 8 analysts rate the stock "buy" or higher, 3
"hold", 1 "sell"; median PT is A$9.30 – LSEG data
** Stock up 1% this year, as of last close
($1 = 1.5389 Australian dollars)
(Reporting by Poonam Behura in Bengaluru)
((Poonam.Behura@thomsonreuters.com;))