CGC – UBS rates the stock as Buy
By Broker News | More Articles by Broker News
UBS reduces the target to $3.25, from $5.20, to reflect the impact of the capital raising and the company’s recent downgrade to expectations.
The broker notes the year has been challenging, with six of the company’s nine categories experiencing headwinds that are largely outside of its control.
The main question, in the broker’s opinion, centres on what a normal year for the company really looks like and where the stock should trade, given the lack of visibility.
With the balance sheet post the capital raising well within covenants and expectations of three-year earnings growth of 24%, UBS continues to believe the stock should trade at a premium to listed peers.
That said visibility over 2020 is unlikely to improve until early in the second quarter. Buy rating maintained.
Sector: Food, Beverage & Tobacco.
Target price is $3.25.Current Price is $2.75. Difference: $0.50. If CGC meets the UBS target it will return approximately 15%.
www.*********.com.au/2019/11/13/cgc-ubs-rates-the-stock-as-buy-2/
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