Liberum said the animal genetics company's fiscal 2014 earnings per share, which fell 5%, was still 3.6% higher than it had forecast and it thinks the results add to the confidence that Genus is poised for an earnings recovery.
"Genus states headwinds are abating and FY2015 is on track to meet consensus (we forecast 9% EPS growth). In additon, a new large, US-style royalty agreement has been signed in
It has a Buy rating on the stock and a
"We continue to see much to like about Genus’ exposure to the increasing global demand for dietary protein. Having lowered its dependence on emerging markets with the GÉnÉtiporc acquisition last year Genus has been hit by multiple, short term, head winds which should abate and potentially benefit further out," Shore wrote to clients.
It said Genus had produced a third year of low growth or contraction, and is still trading on a forward price to earnings ratio of 22.8 times and enterprise value/EBITDA ratio of 15.1 times.
"In our view 2015 doesn’t look likely to produce a huge step forward in performance with the board expecting to perform in line with market expectations,"
Genus shares were up 1.3% at
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