Bega's Discipline, Revenue Growth Lay a Solid Foundation

Dow Jones
08/26

0133 GMT - Bega's cost discipline and revenue growth give the Australian food manufacturer a solid foundation for growth in fiscal 2027 and beyond, UBS analysts say. With an unchanged neutral rating on the stock, the analysts tell clients in a note that they are cheered by 8% international revenue growth across Bega's last fiscal year. They think that international revenue growth could continue to outpace domestic, supported by tailwinds including population growth, urbanization and shifting consumer preferences for ready-to-eat goods. UBS sees manufacturing footprint rationalization, cost savings, automation and capacity expansions as earnings tailwinds. UBS lifts its target price 9.0% to 6.65 Australian dollars. Shares are down 0.4% at A$6.275.

 

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