Morningstar sees Australia's Inghams as 'materially undervalued'

Inghams

11/05/2026 20:12

** Morningstar retains fair value estimate of A$3.5 for poultry firm Inghams Group ING.AX,

** Brokerage views ING's shares as "materially undervalued"

** Adds, the market is "overly concerned" about the persistence of current cost and balance sheet pressures, which are cyclical rather than structural

** ING on Monday logged nine-month core poultry volume growth of 1.1% on pcp vs 2.2% decline last year

** Morningstar says while ING's volume growth is better than expected, it remains below market growth as it reallocates volumes previously supplied to grocer Woolworths WOW.AX

** Adds that industry fundamentals are supportive of co, sees long-term demand to grow with population and expects some increases in per-capita consumption

** Expects FY26 underlying EBITDA A$194 million ($140.63 million) vs co guidance of A$180 million-A$200 million

** As of last close, Inghams down 26.9% so far this year

($1 = 1.3795 Australian dollars)

 (Reporting by Nikita Maria Jino in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))