Morningstar expects Australia's Graincorp profitability to normalize in near term

Graincorp

18/09/2023 19:47

** Brokerage Morningstar expects agri-business co
GrainCorp's  GNC.AX  profitability to normalize in the coming
years as cropping normalizes
    ** Says back-to-back bumper harvests aren't typical,
particularly in combination with globally high grain prices
    ** Forecasts fiscal 2023 earnings of A$525 mln ($337.89 mln)
based on an above-average East Coast winter crop of about 31 mln
metric tons
    ** "We maintain our A$7.20 per share fair value estimate" -
Morningstar
    ** Beyond fiscal 2024, we expect eastern Australian winter
grain production to normalize at about 18 mln metric tons,
representing mid-cycle earnings of about A$270 mln - Morningstar
    ** Four of eight analysts rate the stock "buy" or higher,
three "hold" and one "sell" or lower; their median PT is A$9.30
– LSEG data
    ** Stock down 4.1% YTD, as of last close
 
($1 = 1.5538 Australian dollars)

 (Reporting by Adwitiya Srivastava in Bengaluru)
 ((Adwitiya.Srivastava@thomsonreuters.com;))