Graincorp (GNC) took a big dive recently. I am interested in getting exposure to agriculture long term. Is this a good vehicle?
A: Thanks for the question.
Graincorp took a big dive (about 25%) when the Treasurer knocked back the takeover proposal by Archer Daniel Midland. Following the withdrawal of the takeover offer, the CEO resigned and the Non Executive Chairman of Graincorp is now acting as the CEO.
While there is probably value in Graincorp on a long term basis, in the short term, sentiment is negative – more so in the absence of a full time CEO. According to FN Arena, broker sentiment is -0.2 (scale -1.0 is most negative, +1.0 is most positive), with a broker consensus target price of $9.15.
Regards.
