Jarden raises Australia's Lynch Group PT on outlook hike, easing headwinds

LGL

02/06/2023 03:22

** New Zealand-based investment firm Jarden hikes price
target on horticulture firm Lynch Group Holdings Ltd  LGL.AX  to
A$2.60 from A$2.50
    ** LGL on Thursday raised its FY23 EBITDA outlook to between
A$42 mln ($28.49 mln) and A$43 mln, up from previous range of
between A$36 mln and A$40 mln
    ** Jarden says LGL is a "unique" business with strong
pricing power and "attractive" international growth
    ** Brokerage adds as COVID and freight headwinds ease,
expect material lift in operating cash flow with further upside
via price increases, higher capex in China
    ** However, adds do not expect these headlines until later
in 2023
    ** Sees scope to rerate near term as freight costs continue
to fall
    ** Brokerage hikes FY23 EBITDA forecast by 12% to A$41.9
mln, but leaves FY24 estimates largely unchanged
    ** LGL up 46.7% this year, as of last close, vs a 1%
increase in the ASX All Ordinaries index  .AORD  


($1 = 1.4743 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))