Canaccord Genuity slashed target price on Anpario

10th Jan 2023 11:25

(Sharecast News) - Analysts at Canaccord Genuity slashed their target price on animal feed manufacturer Anpario from 800.0p to 580.0p on Tuesday following an "unusually challenging" trading year.

Canaccord Genuity said historically, Anpario had been able to cope with a number of issues well, mainly thanks to a number of preventative and adjusting measures - including the build-up of a large stock of raw materials when times were favourable.

However, the Canadian bank stated that 2022 had been particularly tough and increased commodity prices and freight costs had affected the group's profitability.

"In H2-2022 in particular, Anpario experienced issues in China related to difficulties in obtaining import permits which delayed the materialisation of some revenue. Most likely in a more limited way, long travel restrictions in China also affected order volumes," said Canaccord, which stood by its 'buy' rating on the stock.

"Despite orders in Asia being impacted, major negative effects were balanced by growth in other geographies that have been promising and are starting to deliver results."

Reporting by Iain Gilbert at Sharecast.com