In the run-up to the half-year figures that ForFarmers will present next week, analysts at KBC Securities have adjusted the investment advice. The price target has also been lowered.
The Belgian KBC Securities expects the outbreaks of African swine fever have a negative effect on the pig sector in Europe. In recent weeks, several large pig farms in Poland and Bulgaria, among others, were affected by the animal disease.
Lower price target
Although ForFarmers in Poland is mainly active in poultry feed, the bank sees reason to adjust the buying recommendation from 'accumulate' to 'hold'. This means that the bank advises investors not to buy or sell shares. Before this, the ForFarmers share had a positive buy recommendation.
The price target has been reduced by €1 to €7,50 per share. On Monday, August 5, the share closed at €6,82. More than 1 year ago, the share was still above €12.
Lower profit
In addition to the troubles surrounding African swine fever, KBC Securities expects the feed group to continue to suffer from the drought. This cut last year's profits, while ForFarmers already had a profit warning has issued.
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This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/varkens/ artikel/10883563/analisten-somber-over-forfarmers]Analysts gloomy about ForFarmers[/url]
The first two months they provide good food when they have just switched to them, after that the quality drops like a stone and they come to talk to you about all kinds of disease problems.