Glanbia (GLB)

Sector:

Food

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  14.71
   
  • Change Today:
     -0.25
  • 52 Week High:  18.98
  • 52 Week Low:  13.89
  • Currency: Euro
  • Shares Issued: 296.05m
  • Volume: 457
  • Market Cap:  4,354.83m
  • RiskGrade: 110
  • Beta: 0.00

Morgan Stanley sees challenging 2019 for Glanbia

By Oliver Haill

Date: Tuesday 15 Jan 2019

LONDON (ShareCast) - (Sharecast News) - Glanbia offers investors access to the US cheese and fitness nutrition markets, but Morgan Stanley sees the 2019 outlook as "challenging" and has initiated coverage with an 'underweight' rating.
The €4.7bn market cap company, which is based in Ireland and joint listed on London's main market, is the largest US cheese producer but balances this low-margin dairy processing with the "more structurally compelling" fitness nutrition business.

Morgan Stanley see a "risk to earnings as the business navigates growth acceleration in a difficult environment", feeling the near-20% rally since mid-October "looks overdone" as the shares have outperformed the broader food names by almost 30%.

Looking at the sports nutrition arm, the company estimates it has a leading 13% share of a $13bn global fitness nutrition market that is growing by mid-single digits. Glanbia nutrition products are centred around whey protein supplements and include brands such as Optimum Nutrition, BSN, Isopure, thinkThin, Nutramino, ABB, Body & Fit and Amazing Grass.

MS analysts believe Glanbia "offers the best opportunity to play this trend as the company leverages geographical expansion opportunities and product innovation to drive volume growth and market share", with strategic priority being to grow the top line to €5bn by 2022 over margin expansion.

"We think growing share and expanding international presence is the right strategy for Glanbia, but are concerned about the impact on margins and cash flow near term."

Third-quarter results in early November were better than expected, with guidance maintained despite fears of a cut, the SlimFast brand was acquired and input costs moved favourably.

"However, we think the outlook for 2019 is challenging as the business focuses on growth amidst trade uncertainty and supply-chain difficulties. We therefore expect the stock to pull back and initiate at 'underweight'."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Glanbia Market Data

Currency Euro
Share Price   14.71
Change Today   -0.25
% Change -1.67 %
52 Week High  18.98
52 Week Low  13.89
Volume 457
Shares Issued 296.05m
Market Cap  4,354.83m
Beta 0.00
RiskGrade 110

Glanbia Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
81.88% below the market average81.88% below the market average81.88% below the market average81.88% below the market average81.88% below the market average
22.58% above the sector average22.58% above the sector average22.58% above the sector average22.58% above the sector average22.58% above the sector average
Price Trend
22.76% above the market average22.76% above the market average22.76% above the market average22.76% above the market average22.76% above the market average
3.23% below the sector average3.23% below the sector average3.23% below the sector average3.23% below the sector average3.23% below the sector average
Income
76.17% below the market average76.17% below the market average76.17% below the market average76.17% below the market average76.17% below the market average
66.67% above the sector average66.67% above the sector average66.67% above the sector average66.67% above the sector average66.67% above the sector average
Growth
32.92% below the market average32.92% below the market average32.92% below the market average32.92% below the market average32.92% below the market average
87.1% below the sector average87.1% below the sector average87.1% below the sector average87.1% below the sector average87.1% below the sector average

What The Brokers Say

Strong Buy 4
Buy 0
Neutral 5
Sell 0
Strong Sell 2
Total 11
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Glanbia Dividends

  Latest Previous
  Final Interim
Ex-Div 14-Mar-19 23-Aug-18
Paid 26-Apr-19 05-Oct-18
Amount 14.49¢ 9.71¢

Trades for 26-Jun-2019

Time Volume / Share Price
09:04 2 @  14.71
09:00 11 @  14.66
09:00 100 @  14.66
09:00 11 @  14.68
09:00 12 @  14.69

Glanbia Key Personnel

Chair Martin Keane

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