PAC Partners analyst Shane Bannan has maintained their bullish stance on IH1 stock, giving a Buy rating on February 6.
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Shane Bannan has given his Buy rating due to a combination of factors that indicate potential for recovery and growth for Inghams Group Ltd. Despite a recent downturn in the company’s financial performance, particularly a notable decrease in EBIT and sales, the company has taken steps to stabilize and improve its position. The temporary decline in poultry volume, mainly due to adjustments related to the new WOW supply agreement, is expected to recover as Inghams has already regained a significant portion of the lost volume through new business opportunities.
Additionally, Bannan points out that the share price is currently trading at a significant discount compared to the market, which presents an attractive investment opportunity given the company’s staple nature and low-risk profile. With feed costs decreasing and the company’s proactive measures to adjust pricing and costs, there is an expectation of improved financial performance in the upcoming fiscal year. This, coupled with the stability observed in the challenging markets of New Zealand and Australia, supports a positive outlook for FY 26, making a Buy rating appropriate.
In another report released on February 6, Macquarie also maintained a Buy rating on the stock with a A$3.40 price target.