Jefferies cuts PT for United Malt on supply-chain issues; retains 'buy'

United Malt

01/08/2022 20:37

** Jefferies cut PT for Australian commercial maltster
United Malt Group  UMG.AX  to A$3.80 from A$4.50; maintains
'buy' rating  
    ** UMG fell as much as 14.2% on Monday after cutting its
FY22 core income forecast to A$100 mln-A$108 mln ($70.21
mln-$75.83 mln) from A$115 mln-A$140 mln  urn:newsml:reuters.com:*:nL4N2ZD04X
    ** "It's hard to be confident this is the last downgrade,
given grain/energy markets remain in flux and supply chain
remains fraught" - Jefferies
    ** Adds that though UMG has no debt maturing until FY24,
concerns have again risen on this front
    ** Jefferies cuts 2022 NPAT estimate by 39% to A$21 mln
    ** Seven of eight analysts rate the stock "buy" or higher,
one "hold"; their median PT is A$4.33 – Refinitiv data
    ** Stock has fallen 30.3% this year

($1 = 1.4243 Australian dollars)

 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))