Jefferies cuts earnings estimates, rating for Australia's United Malt Group

United Malt

10/01/2023 20:27

** Jefferies cuts its EPS estimates and rating for United
Malt Group  UMG.AX  on tough macro conditions
    ** Cuts its EPS estimates for FY23 by 12%, FY24 by 1% and
FY25 by 4%
    ** Brokerage cuts rating to "hold" from "buy", retains price
target of A$3.75
    ** Adds that while beer/whisky demand should prove resilient
to looming consumer recession in North America, UK and
Australia, brokerage can't discount some impact on co's earnings
    ** Says the commercial maltster is well progressed on
customer restructuring to better apportion risk and
Transformation Program delivery
    ** In normal times, UMG should be a stable, low-growth stock
with good yield potential - Jefferies
    ** 4 of 8 analysts rate the stock "buy" or higher, 3 "hold"
and 1 "sell" or lower; their median PT is A$3.73 – Refinitiv 
    ** UMG stock rose 20.4% in 2022
 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))