Agriculture
November 17, 2015
A decline in the achieved yield for corn, MHP’s core crop, and a 22% YoY drop in poultry export volume in 3Q15 have led us to cut our projection for the company’s FY15 EBITDA to USD 455mn (from USD 520mn). At this stage, we forecast flat EBITDA YoY for MHP in FY16, as rising costs for crops and poultry should be offset by higher poultry pricing. We lower our target price for MHP to USD 12.03 (from USD 15.32 previously) while maintaining our BUY recommendation for the issue.
