Morningstar raises FY24 operating profit forecast for Australia's Inghams

Inghams

31/10/2023 18:56

** Morningstar raises its FY24 operating profit forecast for
Australia's Inghams  ING.AX  by 19% to A$446 million ($282.41
million) on strong demand, elevated poultry prices and
improvement across operating performance across farming and
processing
    ** The poultry producer forecast its HY24 statutory
operating profit post-AASB16 of about A$247 million ($156.40
million), higher than Visible Alpha consensus of A$230 mln
 urn:newsml:reuters.com:*:nL4N3C05RB
    ** Says pricing momentum which co had enjoyed in FY23 has
continued in FY24, even as a weaker second-half is expected due
to normal seasonality and inflationary headwinds 
    ** Broker also flags input cost pressures and frequent
over-supply as headwinds for co, even as near-term conditions
remain favourable
    ** Brokerage maintains fair value estimate of A$3.70 per
share, sets "Medium' uncertainty rating on stock 
    ** Five of nine analysts rate the stock "buy" or higher,
three "hold" and one "sell" or lower; their median PT is A$3.56
– LSEG data
    ** Stock has risen ~28.7% this year, as of last close


($1 = 1.5793 Australian dollars)

 (Reporting by Archishma Iyer in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))