On Wednesday, Kerry Group PLC (KYG:ID) (OTC: KRYAY) saw its price target increased by an analyst at Jefferies from EUR 84.00 to EUR 86.00, while the firm retained a Hold rating on the stock. The revision comes ahead of the company's half-year results announcement scheduled for July 31, 2024.
The analyst anticipates Kerry Group's first-half EBITDA to reach EUR 547 million, which is a 2% increase over the consensus estimate of EUR 538 million. This improvement is attributed to a 30 basis point expansion in margins, now expected to be 13.9%. The updated forecast reflects minor adjustments made by the analyst.
For the Taste & Nutrition (T&N) division, second-quarter volumes are projected to be 1.96%, closely aligning with the consensus of 1.95%. The first-half EBITDA for the T&N segment is anticipated to meet the consensus estimates.
Looking forward to the full year 2024, the analyst expects a modest improvement in T&N volume growth, approximately 50 basis points ahead of consensus, largely due to increased innovation and promotional activities in the second half of the year. Additionally, a 2% increase in EBITDA for the full year is projected.
Kerry Group's upcoming half-year results will provide further insights into the company's financial performance and the potential impact of the predicted higher margins and volume growth on its fiscal year 2024 outcomes.
InvestingPro Insights
As Kerry Group PLC (KYG:ID) (OTC: KRYAY) prepares to announce its half-year results, investors may find additional context in the company's financial health and market performance through InvestingPro data. With a market capitalization of $14.06 billion and a P/E ratio standing at 19.87, the company appears to be trading at a valuation that aligns with its earnings. Notably, the P/E ratio adjusted for the last twelve months as of Q4 2023 is slightly lower at 18.19, suggesting a more attractive valuation in recent times.
InvestingPro Tips highlight Kerry Group's long-standing reliability in dividend payments, with dividends raised for 32 consecutive years and maintained for 33 years. Additionally, the company's stock is characterized by low price volatility, which may appeal to risk-averse investors. With liquid assets surpassing short-term obligations and a moderate level of debt, the company's financial stability is noteworthy. These aspects are particularly relevant as investors assess the company's upcoming financial results and consider its potential for sustained profitability, which analysts predict for this year.
Investors interested in a deeper analysis of Kerry Group PLC can find more InvestingPro Tips by visiting https://www.investing.com/pro/KRYAY. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are additional tips available on InvestingPro that can provide further insights into the company's performance and prospects.
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