BUZZ-Jefferies trims PT on Australia's GrainCorp on lower HY margins

Reuters05-17

** Analysts at Jefferies see an earnings downside from GrainCorp's lower margins

** Brokerage cuts its price target on diversified agricultural firm to A$8.90 from A$9.10

** GNC posted on Thursday a decline in HY supply chain and crush margins from both its agribusiness and processing segments

** Jefferies also cuts its FY24-26 earnings estimates for GNC by 2-3%

** "1H24 has set FY24 to be slightly below original expectations, but as global grain production normalises, El Niño conditions come to an end, and growing conditions in East Coat Australia improve, we view FY24 as trough" - Brokerage

** Stock up 11.7% YTD, as of last close

(Reporting by Aaditya Govind Rao in Bengaluru)

((Aaditya.govindrao@thomsonreuters.com;))

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