MS downgrades Australia's Graincorp, but says first-half results beat estimates

Graincorp

13/05/2022 01:36

** Morgan Stanley cuts rating for Australia's Graincorp
 GNC.AX  but says agribusiness firm's first-half results
stronger than anticipated  urn:newsml:reuters.com:*:nL3N2X24LI
    ** MS downgrades GNC to "equal-weight" from "overweight",
says stock is now trading within 2% of its price target and it
sees stock now fairly valued
    ** MS maintains PT at A$10.70  
    ** MS says HY underlying group EBITDA 5% above its
estimates, hikes FY22 EBITDA forecast by 3% to A$667 mln
($458.23 mln)
    ** MS sees potential for another above-average crop in FY23,
increases FY23 EBITDA forecast by 31%, to A$515 mln 
    ** Raises outlook for FY22-23 total dividends to A$1/share 
    ** Two of 11 analysts rate the stock "buy" or higher, seven
"hold" and two "sell" or lower; their median PT is A$9.90–
Refinitiv Eikon data 
    ** GNC stock up 22.4% this year, as of last close
($1 = 1.4556 Australian dollars)

 (Reporting by Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))