Rusagro - Pivoting to Expensive Soft Commodities
Rusagro is currently benefiting from high soft commodity prices and the weaker ruble. We anticipate strong 4Q18 financials, and we expect margins to remain elevated through 9m19. We increase our 2019 EBITDA forecast by 11% to reflect rising sugar and wheat prices. This lifts our target price to $13.00 per GDR, though we keep our recommendation at HOLD in light of the stock's recent rise. We like the company's fundamentals, but we await further clarity on the terms of the Solnechnye Produkty deal. The 4Q18 financials should also point to the level of COGS growth next year.Ros Agro, through its subsidiaries, is engaged in agricultural production, cultivation of pigs, processing of raw sugar and production of sugar from sugarbeet, vegetable oil production and processing. Co. and its subsidiaries are organised on the basis of four segments: Sugar, which is engaged in the production and trading operation with white sugar; Meat, which is engaged in the cultivation of pigs and selling of consumable livestock to third parties; Other agriculture, which is engaged in the cultivation of plant crops and dairy cattle livestock; as well as Oil, which is engaged in vegetable oil extraction, production and sales of mayonnaise, consumer margarine, and bottled vegetable oil.
Sberbank CIB Investment Research is a research firm offering equity, fixed income, economics, and strategy research. It covers analysis on all aspects of Russia’s capital markets, issues and industries. The firm analyzes trends in Russia and combines local knowledge with a global perspective. It processes macroeconomic data, market and company-specific news, stock quotes and other information for providing research reports. The firm provides details and latest prices on the most traded names and most traded paper on all segments Russian market. In strategy research, it provides thematic research, tips and descriptions of the methodology used to evaluate companies.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.