BUZZ-Australia's GrainCorp rises as brokerages upbeat on annual forecast

Reuters
05/16
BUZZ-Australia's GrainCorp rises as brokerages upbeat on annual forecast

** Shares of GrainCorp GNC.AX up 0.8% at A$7.84

** The grain handler posted 1H25 underlying NPAT A$69.1 million ($44.38 million) on Thursday, "modestly ahead" of Bell Potter's expectations of A$68.2 million

** Brokerage hikes NPAT estimate by 5% for fiscal 2025

** Bell Potter, however, trims NPAT estimate by 8% and 3% for fiscals 2026 and 2027, respectively, on higher Canadian losses

** Retains "hold" recommendation and target price of A$7.45

** UBS also hikes FY26 EPS estimate by 11%, notes GNC's resilience in a trade war backdrop

** We think the key factor that will determine the extent of earnings upside is the margin backdrop, which seems to remain impacted by elevated global grain supply - UBS

** Brokerage marginally hikes price target to A$8.6 from A$8.5, retains "buy" tag

** GrainCorp stock up 6.8% YTD, including current session's moves

($1 = 1.5571 Australian dollars)

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com;))

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