2112 GMT - Foster Stockbroking is urging investors to sweeten...

2112 GMT - Foster Stockbroking is urging investors to sweeten their portfolios with
chocolate maker Yowie (YOW.AU). The broker initiates coverage of Yowie at buy with a
A$1.10/share price target, approving of its strategy in the US, where the company faces
no direct competitor. Foster says that's because global rival Kinder Surprise
can't be sold in the US because the toy inside the chocolate is considered a choking
hazard. Yowie's products are now being rolled across 1,505 Walmart (WMT) stores
following a successful trial in Texas. Globally, Yowie's sales could reach 12M units
by 3Q FY16. "Conceivably, if the brand is a success, US demand alone could exceed
100 units per annum," Foster says. "On annualised sales of 100 million units we
believe Yowie generates A$40 million net profit, applying a 17 times earnings multiple
would imply a valuation of up to A$4.10/share." YOW last at A$0.55.
([email protected]; @dwinningWSJ)

  (END) Dow Jones Newswires
  March 16, 2015 17:12 ET (21:12 GMT)
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Tuesday 17 March 2015 08:12:00.000 AEST