On the surface, ING delivered a strong 1H24 result this month, with earnings (EBITDA) up 66% to $138mn, in line with the company’s recent guidance update in late November. However, the stock has been subsequently smacked over 20% on what appeared to be a softening in the volume outlook commentary; the rerating makes the Inghams risk/reward attractive from a valuation perspective, with it trading on an FY24 P/E of 12x compared to its long term average of 14x. Poultry market fundamentals are strong at present, and if ING can sustain its level of profitability, its good value at current levels – the stock will pay a 12c fully franked dividend mid-March, putting it on an estimated yield over 6% of the coming 12-months.
- We like the risk/reward towards ING after its sharp +20% pullback in the last few weeks.
MM likes ING around $3.50-60
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