This will bring manuka honey to the attention of more domestic and international institutional investors. They will increasingly become more aware of Comvita's recent joint venture with Capilano and the benefits that may produce for both companies.
If they continue to grow in fy17 to 15m npat that gives $1.74 eps. If we use a conservative forward pe range of 15-20, the share price could quite reasonably trade in the range $26-$35 in fy17 imo.
We also need to be mindful that the company increased exports to asia by 53% last half. If this growth continues, more investors will take note and the probability increases of the forward pe trading range increasing to 15-25, which would open up a possible fy17 trading range of $26-$43 imo.
Interesting times ahead.
CZZ Price at posting:
$21.50 Sentiment: None Disclosure: Held
