17/11/2023 09:24

Bega Cheese Ltd (BGA) $3.00

Dairy foods business BGA is trading more than 60% below its dizzy heights back in 2018 as dairy processing remains an industry under pressure. Yet, from a valuation perspective, the stock is still not exciting given the trajectory of earnings.

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30/03/2023 09:27

Bega Cheese Ltd (BGA) $3.44

Bega Cheese operates the processing, manufacturing, and distribution of dairy and grocery products but it’s another example of how the sectors struggled over recent years with the stock down around 50% from its 2021 high. Bega recently delivered 1H23 EBITDA of A$75mn slightly lower than consensus primarily due to margins contracting to their lowest in the company’s history, not a great record to break.

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01/12/2022 09:10

Bega Cheese Ltd (BGA) $3.50

Dairy business BGA has fallen -38% year-to-date not helped by a downgrade by CLSA back in mid-October, another example of a trend following through so far this year. The stock is not overly cheap trading on a 26.3x for 2023 but its estimated 3.4% yield over the next 12 months should limit further downside. • We think BGA can squeeze up over 15% into Christmas but it’s unlikely to find itself in an MM portfolio.

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18/10/2022 09:41

Bega Cheese Ltd (BGA) $3.32

BGA fell another -4.9% yesterday taking its decline this year to over -40%, another perfect example of stocks following through in both directions this year. Sentiment towards the stock wasn’t helped on Monday by a downgrade from CLSA to reduce.  

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26/08/2022 17:16

Bega (BGA) $4.18

BGA +11.76%%: it was hardly an unblemished report from Bega, however, the dairy products company has performed well despite a number of headwinds facing the business over the last 12 months. EBITDA jumped 27% despite higher mil costs, supply chain disruptions and flooding impacting performance throughout the year, meeting analyst expectations. They also...

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02/08/2022 09:25

Bega Cheese Ltd (BGA) $3.48

BGA made fresh 8-year lows in July totally ignoring the markets euphoric rally, the company delivered a profit downgrade to the tune of ~9% caused by rising Victorian milk prices, at MM we were surprised that anyone could have expected a different outcome, all they had to do was pop into Coles or Woolies! What’s particularly weighing on the stock is heavy downgrades...

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15/07/2022 09:23

Bega Cheese Ltd (BGA) $3.25

BGA was thumped -8.5% yesterday after delivering a profit warning caused by rising Victorian milk prices – the downgrade equated to ~8.6% basically exactly what the stock fell. There’s plenty of conjecture in the press overnight around how this news may have been leaked earlier allowing 3 brokers to downgrade the stock on June 20th however from our perspective all we care about is whether BGA is now presenting good value as it plunges towards $3.

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18/11/2021 09:33

Bega Cheese (BGA) $5.68

BGA has been on our radar of late as it pushes towards fresh 4-month highs plus considering its AGM was in October it’s unlikely that any bad news is lurking around the corner. The dairy business has been growing revenue encouragingly even while the disrupted Diagou channel has seen a softening of demand for its infant formula. Following the successful...

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27/08/2021 09:08

Reporting Today (BGA, LYC, MYX, MSB, NXT, WPR, WES)

Companies reporting today include: Bega Cheese (BGA). Lynas Corp. (LYC), Mayne Pharma (MYX), Mesoblast (MSB), NextDC (NXT), Waypoint REIT (WPR), Wesfarmers (WES)

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30/07/2021 09:34

Bega Cheese (BGA) $5.25

BGA has struggled of late due to rising milk prices however if we stand back the share price while volatile has gone nowhere for well over 5-years, during which time the ASX has powered higher. This is the only one that interests us into periods of excessive weakness.

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