I should have noted that the target through-the-cycle EBITDA is just $220m.
Here's the latest commentary from Macquarie. It looks like they are also making the point about increasing the target through-the-cycle EBITDA:
"Action and recommendation • Outperform $10.80 Target Price GNC continues to be supported by a third consecutiveabove average ECA winter crop, strong global demand for Australian grainand oilseeds, and supply chains running at close to full capacity. Key focus forinvestors are growth options (organic, M&A), valuation upside from through thecycle earnings revisions, and capital return optionality given GNC’s strongbalance sheet ($177m core net cash as at FY22)."
Oh, and in case you were wondering why merchant bank analysts are so well paid, have a look at this chart ... seems that plants do better when well-watered, but not so good if its too dry or they get flooded. Who would have thought?
GNC Price at posting:
$7.77 Sentiment: Buy Disclosure: Held
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