What are your thoughts on CGC? Is it a hold or sell?
I am a big believer in agricultural stocks for the future and also the China theme. CGC also having a stake in fruit farms in China possibly gives it a foot in the door as far as trade goes?
A: Thanks for the question about Costa Group (CGC).
I am a bit luke warm on the stock. It seems that it has now fallen out of favour with the market after its profit warning. This came after a substantial run-up and quite a bit of hype. Sometimes when this happens, the market is very slow to forgive.
Costa is due to report on 27 February.
As for the brokers, they still like the stock (3 buys, 2 neutrals), but the target price of $5.64 is a 4.7% premium to the last price.
I am not a buyer.
