Headwinds to be short-lived for Australia's United Malt - Morningstar

United Malt

26/03/2023 20:29

** Brokerage Morningstar says headwinds to be
short-lived for Australia's commercial maltster United Malt
Group  UMG.AX  as it sees demand for craft beer normalising 
    ** Adds it sees improved earnings following the 2023 crop
harvest to support further earnings recovery in fiscal 2024 
    ** Brokerage says with strong barley crop production
forecasted for 2023, the additional cost for importing barley is
unlikely to recur in 2023
    ** Brokerage says "getting consumers back to bars (rather
than at home) is crucial for United Malt's profitability"
    ** Morningstar keeps its fair value estimate unchanged at
A$4.00 for UMG
    ** Three of 7 analysts rate the stock "buy" or higher, three
"hold" and one "sell"; their median PT is A$3.75 – Refinitiv
data 
    ** Stock down 0.9% so far this year, as of last close 
    


 (Reporting by Udbhav Krishna P in Bengaluru; Editing by
Alexandra Hudson)
 ((UdbhavKrishna.P@thomsonreuters.com;))