Shares in Bega Cheese Ltd are up .75% at $6.75 after UBS released a positive market note on the company over the weekend.
BGA had dropped about 8% since the half-year results released last Wednesday, despite an improvement in all key financial metrics over the previous corresponding period.
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However, it seems the market might have been too harsh on the dairy company. Bega’s first-half normalised EBITDA of $70 million exceeded the $64 million forecast by the street.
We see scope for BGA to reach $7.42 a share and find the stock attractive at the current price, based on 20X earnings.
Our ALGO engine triggered a buy signal in BGA at $6.81 on January 16th. BGA will go ex-dividend tomorrow paying 5.5 cents per share, fully franked.
Bega Cheese
