NZ's Synlait Milk hits record low; Bell Potter lowers earnings forecasts

Synlait Milk

04/06/2024 05:19

(Updates with Bell Potter comments and share moves)
    ** Shares of New Zealand's Synlait Milk  SML.NZ  slide as
much as 14.8% to an all-time low of NZ$0.375
    ** Synlait Milk's Australia-listed shares  SM1.AX  fall as
much as 16.3% to a record low of A$0.36
    ** Analysts at Bell Potter lower PT for Synlait Milk's
Australian shares to A$0.47 from A$0.66; maintain "hold" rating
    ** Broker downgrades EBITDA forecasts for FY24, FY25 and
FY26 by 19%, 4% and 4%, respectively, on updated commodity
prices and farmgates pricing assumptions 
    ** Dairy milk producer said on Monday it expected its annual
earnings to be in the lower end of its forecast range. It also
flagged cessation notices by a majority of suppliers
    ** NZ shares trading volume 4.2 times the 30-day average,
while Australian shares volume 2.7 times the 30-day average     
   
    ** Australia-listed stock had fallen 51.4% this year, as of
last close, while New Zealand shares down 53.7% 

($1 = 1.6155 New Zealand dollars)

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))