With retail demand/pricing largely favourable across its portfolio of domestic produce categories, we expect CGC to deliver a strong earnings recovery on an extremely weak pcp and see upside risk to our FY20F NPAT-SL forecast of A$52.2m and Factset consensus of A$48.1m (distorted by AASB16).
I am assessing the market reaction on the report day versus what Morgans has predicted for different companies since 2/2/21 and generally there is a good correlation between them. For example, their prediction for ING was a solid 1H result, which was correct and ING SP jumped by a few percent today with release of Half Year Results.
IMO their Reporting Season Calendar could be a useful guide.
CGC Price at posting:
$3.99 Sentiment: Hold Disclosure: Held
