Glanbia (CDI) (GLB)

Sector:

Food

  11.43
   
  • Change Today:
     0.18
  • 52 Week High:  15.2
  • 52 Week Low:  10.1
  • Currency: Euro
  • Shares Issued: 276.88m
  • Volume: 100,606
  • Market Cap:  3,164.75m
  • RiskGrade: 168

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 (CDI) Market Data

Currency Euro
Share Price   11.43
Change Today   0.18
% Change 1.60 %
52 Week High  15.2
52 Week Low  10.1
Volume 100,606
Shares Issued 276.88m
Market Cap  3,164.75m
RiskGrade 168

Glanbia (CDI) Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
82.81% below the market average82.81% below the market average82.81% below the market average82.81% below the market average82.81% below the market average
58.62% below the sector average58.62% below the sector average58.62% below the sector average58.62% below the sector average58.62% below the sector average
Price Trend
23.84% above the market average23.84% above the market average23.84% above the market average23.84% above the market average23.84% above the market average
13.33% above the sector average13.33% above the sector average13.33% above the sector average13.33% above the sector average13.33% above the sector average
Income
78.55% below the market average78.55% below the market average78.55% below the market average78.55% below the market average78.55% below the market average
17.65% below the sector average17.65% below the sector average17.65% below the sector average17.65% below the sector average17.65% below the sector average
Growth
32.21% below the market average32.21% below the market average32.21% below the market average32.21% below the market average32.21% below the market average
24.14% below the sector average24.14% below the sector average24.14% below the sector average24.14% below the sector average24.14% below the sector average

What The Brokers Say

Strong Buy 5
Buy 1
Neutral 4
Sell 0
Strong Sell 0
Total 10
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Glanbia (CDI) Dividends

  Latest Previous
  Final Interim
Ex-Div 24-Mar-22 19-Aug-21
Paid 06-May-22 01-Oct-21
Amount 17.53¢ 11.75¢

Trades for 27-May-2022

Time Volume / Share Price
18:13 1,333 @  11.27
18:12 3,648 @  11.17
17:37 4,165 @  11.17
17:26 2,249 @  11.17
17:18 1,123 @  11.20

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