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Price ForFarmers is slowly creeping up again
The share of ForFarmers made a considerable price gain in the second half of May. At least in percentage terms. The share is now moving again around the price of €3.
On May 9, the closing price hit a low of €2,57 and then climbed more than 15% to €3 at the end of last week. The cautious turnaround came shortly after the animal feed company released its quarterly figures had published† They were, as expected, not good. EBITDA lost 47%, with no further details on sales figures being disclosed.
The lesser performances have meanwhile been priced in the share price. It is possible that investors are now anticipating an improvement in the results, judging by the rising price. Although the ForFarmers share can be seen as undervalued, banks are not yet encouraging to enter. With the exception of Kepler Cheuvreux (which uses sales advice), the advice is mostly 'keep'. An investor term that stands for wait and see, for both potential buyers and sellers.
Waiting for new strategy and CEO
Little price-sensitive news from ForFarmers can be expected in the short term. Upcoming CEO Chris Deen, who comes over from Aviko, takes office on 1 July. Some time after that, ForFarmers will come up with an adapted version of the new strategy. Initially, the core message was that ForFarmers wanted to move outside of Europe, but those ambitions were shelved due to disappointing performance. Its own purchasing program, which has not yet been completed, has also been on hold since mid-March.
Wouter Job
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