UBS cuts PT on Select Harvests on near-term pricing outlook uncertainty

Select Harvests

31/01/2023 04:34

** UBS cuts PT on Select Harvests  SHV.AX  to A$5.10 from
A$6.40 on further quality impacts and reduced market prices for
almond crops
    ** Broker sees FY23 EBIT impact of A$18 mln ($12.67 mln) -
A$22 mln and a likely goodwill impact of A$26 mln for the
Australian almond producer 
    ** New PT is at a 27.5% premium to stock's last close
    ** Says recent mould issues due to wet weather led to more
portion of lower grade stock
    ** If spot prices do not improve over FY23, in the absence
of asset sales we do see balance sheet risk - UBS
    ** UBS adds rain and snowfall in California and an
oversupply in the industry are weighing on prices 
    ** We believe the outlook for pricing is positive over the
medium-term - broker
    ** Across 2022, SHV down 37.2%
($1 = 1.4207 Australian dollars)
 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))