$1 price target • BURNS PHILP
• Broker: UBS
• Rating: Unchanged at BUY2
• Price: Raises to $1.00 from $0.85
• Comment: "Burns Philp reported a high quality profit result, with the Goodman Fielder business generating EBITDA of $350 million, versus our forecast $320 million. The strong cashflows of the business also positively surprised. Assuming the outstanding disposal goes unconditional, the company will have effectively swapped a non-branded ingredients business for a strong consumer branded business with 45 per cent higher EBITDA with effectively no new debt or equity compared to the pre-GMF structure."
BPC
burns, philp & company limited
