Agriculture
November 05, 2013
With ambitious capacity expansion programs underway, Avangard and Ovostar are wellpositioned to benefit from a strong demand outlook for eggs and egg products, especially on Middle Eastern export markets. Even with corporate governance concerns priced in, the AVGR stock still looks cheap, and we set a BUY recommendation on the issue with target price of USD 19.35 per GDR. After having risen by 30% since early September, the OVO stock currently looks fairly valued to us. Our target price for the issue is PLN 109.50 (USD 35.30).
