Morningstar remains cautious on Australia's GrainCorp profitability

Graincorp

16/11/2023 21:47

** Analysts at Morningstar note that GrainCorp  GNC.AX 
delivered FY results broadly in line with their forecast on the
back of high supply chain margins
    ** Brokerage raises fair value estimate to A$7.40/shr
    ** Morningstar notes that macroeconomic conditions like the
Russia-Ukraine war, among others, have boosted exports, allowing
GrainCorp to maximize utilization of its processing capacity
    ** Analysts expect GrainCorp's profitability to normalize as
cropping normalizes, since co's core Australian grain storage
and logistics business is heavily reliant on favourable weather
patterns
    ** Five of 8 analysts rate stock "buy" or higher, 2 rate
"hold" and 1 rates "sell" or lower - LSEG data
        ** Stock up 3% YTD, as of last close

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((Shivangi.Lahiri@thomsonreuters.com;))