RBS Australia 26/11/2009 1 Buy $8.00 26.4% Graincorp posted a solid result under the circumstances, the broker suggests, but a 22% downgrade to FY10 profit highlights the reality another tough year is afoot.
Volatility in GNC's earnings makes the acquisition of UMH even more imperative, the broker suggests, however the stock remains undervalued even after the broker drops its traget from $9 to $8. Buy retained.
Citi 26/11/2009 1 Buy, High Risk $9.20 45.3% Underlying FY09 profit in the group's core supply chain assets was better than the broker expected.
However, Citi thinks the immediate outlook is more subdued and as such downgrades its FY10 net profit estimate by 2%. There are minor upgrades to later years though.
The target price remains unchanged at $9.20 and the broker remains a Buyer of the stock on a 12-month time horizon.
JP Morgan 26/11/2009 1 Overweight $8.20 29.5% Graincorp's result beat its own guidanc with Ports particularly strong, the broker notes. But ongoing guidance was disappointing and leads the broker to downgrade forecast earnings by 5.7% in FY10, with FY11-12 rising by 2.0% and 5.6%.
Credit Suisse 26/11/2009 1 Outperform $10.00 58.0% Credit Suisse analysts comment Graincorp released a FY09 result in line with expectations. The analysts like the composition of the results and add they believe management's guidance for FY10 looks conservative.
They have a sum-of-the-parts valuation of $9.36 and retain their $10 target, as well as their Outperform rating.
GNC Price at posting:
$6.29 Sentiment: None Disclosure: Held
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