News Cattle feed
Belgian bank raises ForFarmers price target
The Belgian bank KBC Securities is pleased with the market opportunities of ForFarmers in Poland and thus yesterday (13 July) raised its target price by a quarter to €6,25 per share.
A stock market analyst from the bank says that the animal feed group is in a good position, partly because of a good start in Poland. Here, ForFarmers took an interest in Tasomix in 2018. In contrast to the shrinking livestock in the home market in Northwestern Europe, Poland can be regarded as a growth market.
ForFarmers performed significantly less in recent years, but in the first quarter of 2020 profit was on the rise again. However, the price has been moving downwards continuously in recent months. In mid-June, the share, listed on the Damrak, was only worth €5,20. In April, the price was still well above €6.
Drought concerns
The decline was partly due to the fact that the Dutch bank Kempen & Co removed the ForFarmers share from the buying list this spring. This is due to concerns about drought, which affected the animal feed group in 2018. Due to the low water levels, logistics had to be partly transported by road, which resulted in higher costs. However, due to the rainfall of recent weeks, those concerns have faded into the background. However, the water levels are still low.
The increased price target by KBC may cause a reversal, although it is still not clear to investors how ForFarmers is heading for the future. Initially, a new strategy was to be launched this spring, but this has been shelved due to the corona crisis. Due to the corona crisis, the animal feed group also refrained from making forecasts for the rest of this year in May, as many listed companies do.
Wouter Job
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