CS raises PT on New Zealand's Sanford on positive FY20 outlook
15/11/2019 03:17
** Credit Suisse raises PT on seafood firm Sanford Ltd
SAN.NZ to NZ$7.65 from NZ$7.57; maintains "outperform" rating
** Sanford on Thursday reported a 1.4% drop in FY net profit
at NZ$41.7 mln ($26.44 mln), while revenue rose about 6% to
NZ$545.1 mln
** CS says it has positive FY20 outlook for SAN across wild
catch, salmon, and mussels given pricing, and initiatives to
optimise vessels and mitigate algal blooms
** Brokerage says SAN will be engaging in several vessel
optimisation initiatives in FY20 to improve availability after
it was negatively impacted by outages on an ageing vessel
platform
** CS notes that EBIT per kg increased to NZ$0.56 in FY19
from NZ$0.54 last year; adds that excluding the impact of the
San Granit outage and algal blooms, SAN would have achieved an
EBIT/kg of NZ$0.60
** Shares rise as much as 1.4% to NZ$7.20 to mark their
biggest intraday pct gain since Oct. 18
** As of last close, stock has risen 7.6% this year
($1 = 1.5773 New Zealand dollars)
(Reporting by Aby Jose Koilparambil in Bengaluru)
((abyjose.koilparambil@thomsonreuters.com))