MM view on Costa Group (CGC) & Fenix Resources (FEX)

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Question asked 23/04/2021

MM view on Costa Group (CGC) & Fenix Resources (FEX)

Hi MM,

Can I please have your current view on Costa Group (CGC). Also Fenix Resources (FEX ) has had a good run up this week and would like your view on this stock and any price target.

Regards Debbie.

Answer

Hi Debbie,

Fruit & veg business CGC has been in recovery mode since late 2019, we exited back in February which was premature in hindsight as its continued to grind higher in sync with the overall market. Agricultural companies tend to have periods of headwinds followed by periods of tailwinds, CGC has been enjoying the tailwinds of late. However around current levels, it is losing some momentum and it’s on now on 23x forward earnings, which is expensive given earnings volatility. MM is comfortable being on the sidelines. Consensus price target for the market is around current levels.

FEX is a $135m WA resources company which has indeed popped nicely in the last 2-weeks. Technically FEX looks good while it can hold above 27c, or around 10% lower, at this stage price targets are pure guess work.

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Costa Group (CGC)

LAST UPDATED 23/04/2021 11:20

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Fenix Resources (FEX)

LAST UPDATED 23/04/2021 11:22

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