Morningstar sees Australia's Inghams as 'materially undervalued', shares rise

Inghams

12/05/2026 01:58

Updates

** Shares of Inghams Group rise as much as 5.2% to A$1.915, their highest since April 30

** Morningstar retains fair value estimate of A$3.5 for the poultry firm; views Inghams' 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

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

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

** Adds, industry fundamentals are supportive of the company; 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

** Inghams down 23.5% so far this year, including the day's moves

($1 = 1.3795 Australian dollars)

(Reporting by Nikita Maria Jino in Bengaluru)

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