The share price of the ASX-listed Inghams Group Limited (AU:ING) gained almost 8% on Tuesday following a positive trading update by the company for the first half of the fiscal year 2024. The update revealed various positive factors for the company, including growing demand for poultry, recovery in business operations, improved wholesale pricing, etc., sending the shares higher.
The share price traded up by 7.92% today after the update, placing it among the top gainers on the ASX. Year-to-date, the stock has generated a return of 34% in trading.
Inghams Group produces and supplies poultry products and fodder to major retailers, QSR operators, food service distributors, and wholesalers in Australia and New Zealand.
Encouraging Outlook
For the first half of FY24, the company expects its underlying net profit after tax to grow by 110% to AU$71 million. The anticipated growth in underlying EBITDA (earnings before interest, taxes, depreciation, and amortization) is 65%, potentially reaching AU$138 million. In contrast, the second half of 2024 is projected to yield lower results compared to the first half, primarily due to regular seasonal patterns and the persistent challenges related to inflation in labor, feed, and other costs.
The company will announce its first-half results for FY24 on February 15, 2024.
Inghams Stock Price Forecast
On TipRanks, ING stock has a Moderate Buy rating based on three Buy, two Hold, and one Sell recommendations. The Inghams share price target is AU$3.54, which is 3.7% lower than the current trading levels.
It is important to note here that these ratings were last assigned in August and are subject to changes following the positive update.
