FWIW, Macquarie released a new research note about GNC today. Quick summary:
- Macquarie changes its valuation methodology again. Now values GNC on a combination of asset replacement value and through-the-cycle sum of the parts.
- On this basis, it increases its valuation from $9.08 to $10.13.
- However due to forecast El Nino and forecast lower oilseed crush margins, it reduces its EPS and dividend forecasts. Now forecasting:
> FY23 eps $1.11, div 47c > FY24 eps 50c, div 35c > FY25 eps 42c, div 30c.
- Also notes the expected >$100m to be received from sale of UMG stake.
- Expects the expansion of oilseed crush capacity to take 3 years.
- 12mpt $10.13. Outperform.
GNC Price at posting:
$7.98 Sentiment: Buy Disclosure: Held
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