Macquarie

Macquarie rates MGC as Outperform (1) - Recent changes to Chinese import regulations under cross border e-commerce have prompted speculation on the impact on MG Unit Trust but Macquarie observes the outcome is still unclear as to which companies will be affected.

The main impact is likely to be on the company's adult milk powder sachet business. Still, the drawn-out process is being disruptive to the business and the broker suspects distribution costs may increase. Outperform and $2.60 target retained.
Target price is $2.60 Current Price is $2.01 Difference: $0.59 If MGC meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges). The company's fiscal year ends in June.

Market Sentiment: 1.0 All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources