Jefferies sticks with 'hold' rating for Graincorp after outlook indicates weak H2

Graincorp

11/05/2023 21:50

** Jefferies analysts say Graincorp Ltd's  GNC.AX  1H23
result was "very strong" despite drop in grain prices, which
indicated results were volume driven
    ** However, brokerage retains "hold" rating on the
Australian agribusiness firm, and maintains PT of A$8.70
    ** Brokerage says 2H23 outlook has worsened given FY22 was
"almost certainly the peak of current agriculture cycle" and
GNC's FY23 outlook is skewed to 1H23
    ** GNC on Thursday hiked its annual earnings outlook citing
strong demand for Australian grain and oilseeds; also declared a
special dividend of 10 AU cps
    ** GNC expects FY23 NPAT between A$220 mln ($149.23 mln) and
A$260 mln, of which it logged A$200 mln in 1H23
    ** 4 of 8 analysts rate the stock "buy" or higher, 3 "hold"
and 1 "sell"; median PT A$9.25 – Refinitiv
    ** GNC up 5.3% this year, as of last close, vs 3.0% increase
in ASX 200 benchmark index  .AXJO  

 ($1 = 1.4743 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))