Jefferies slashes EBITDA forecast for Australia's GrainCorp
17/11/2022 20:29
** Jefferies reduces FY25 EBITDA forecast for agricbusiness
co Graincorp GNC.AX from A$727 mln ($485.71 mln) in FY22 to
A$246 mln in FY25
** Raises FY23-25 EPS forecast by 5%-8%
** Says heavy rains across East Coast Australia (ECA) has
created uncertainty around the 2022-23 ECA crop
** Says expects heavy rains to impact yield and quality in
parts of ECA, with a higher level of feed-grade receival
** Adds that after multiple years of greater than average
ECA rain, a period of drier weather might be nearing
** With GNC selling off over the last few months, it's
starting to look more reasonably valued given the current peak
nature of earnings - Jefferies
** Five of 10 analysts rate the stock "buy" or higher, four
"hold" and one "sell"; their median PT is A$8.68 – Refinitiv
data
** Stock had lost 3.9% this year, as of last close
($1 = 1.4968 Australian dollars)
(Reporting by Echha Jain in Bengaluru)
((Echha.jain@thomsonreuters.com))