goldfinger
- 02 Nov 2014 20:17
- 363 of 1268
Dairy Crest's (DCG) first-half numbers are released on Thursday, and Peel Hunt's Hall is pencilling in pre-tax profit of £21.6 million, down from £21.9 million last year, due to a challenging diary market.
Analysts' expectations: Profits from property disposals are to be partially wiped out by the dairy division losing £4 million in the first six months of the year.
"The major processors have now reduced their prices to farmers, and this has brought input/commodity prices more into line – this should ensure a much better second half performance in dairy," commented Hall. "Meanwhile, the key brands are continuing to perform well, with sales growth of around 4%."
He reckons investors should 'buy' Dairy Crest, putting a 550p target price on the stock