UBS sees headwinds for Australia's Select Harvest, cuts PT

Select Harvests

23/11/2022 01:34

** UBS says while softer demand from the U.S. and the UK,
and recent inclement weather conditions could be transitory for
Australia's Select Harvest  SHV.AX , it still sees headwinds for
co 
    ** The almond producer had flagged recent wet weather and
impact of fire on warehousing and fumigation capacity in FY led
to higher warehousing and distribution costs  urn:newsml:reuters.com:*:nL4N32H3Y4
    ** The brokerage cuts the FY23 estimate for co's earnings
per share by 71% to reflect lower volumes, higher production
costs among others 
    ** The brokerage further flags large earnings cuts in
FY23/24 estimates 
    ** While UBS sees a positive medium-term outlook for co, it
acknowledges that stronger shipments out of California are
needed to rectify the current oversupply, before prices rise
    ** UBS maintains a 'Buy' rating, but cuts PT to A$6.40/shr
from prior rating of A$7.00/shr, to reflect downward earnings
revisions 
    ** Five of six analysts covering the stock rate it "buy" or
higher and one "hold"; their median PT is A$6.71 – Refinitiv
Eikon data 
    ** Stock down 20.5% this year as of last close 
 (Reporting by Udbhav Krishna P in Bengaluru)
 ((UdbhavKrishna.P@Thomsonreuters.com))