United Malt Group gave credible account of changes underway - Jefferies

United Malt

03/08/2022 20:46

** Jefferies says Australian commercial maltster United Malt
Group  UMG.AX  gave a credible account of changes underway at
its investor day presentation and how these will translate into
material earnings lift; maintains 'buy' rating, PT of A$3.80
    ** UMG at the presentation said focus is now in capital
costs, cost and cash discipline to deliver a meaningful earnings
uplift over medium term  urn:newsml:reuters.com:*:nFWN2ZE4G2 
    ** Brokerage says they have higher confidence that guidance
and earnings are now on a much sounder footing 
    ** Adds that it appears finally that the big issues such as
much improved commercial terms, more appropriate risk sharing
with customers have finally been dealt with
    ** Six of eight analysts rate the stock "buy" or higher, two
"hold"; their median PT is A$3.85 – Refinitiv data
    ** Stock has lost 30.7% of its value this year

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