UBS rates United Malt 'buy' ahead of FY22 results

United Malt

01/11/2022 24:34

** UBS upgrades rating on Australia's United Malt Group
 UMG.AX  to "buy" ahead of co's FY22 results; gives price target
of A$3.50
    ** Brokerage doesn't expect any major surprises at results,
unchanges forecast for 1H23/FY23; says no further 'bad news' to
be a positive catalyst for share price
    ** UBS believes that the commercial maltster has an
opportunity to deliver about A$200 mln ($128.26 mln) EBITDA by
FY24, but brokerage forecasts A$178 mln EBITDA for FY24 given
recent execution concerns and supply-side uncertainties
    ** UMG shares up as much as 3.9% to A$3.23, their highest
since Aug 6
    ** Five of eight analysts rate the stock "buy" or higher,
two "hold" and one "sell" ; their median PT is A$3.65 –
Refinitiv data
    ** Stock down 28.7% this year, as of last close
    ($1 = 1.5593 Australian dollars)
 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))