Outlook at Origin Enterprises hailed by analysts but shares fall

Analysts have hailed a trading update from Origin Enterprises as showing the international agri-services firm was on course to achieve their price targets for 2017.
Outlook at Origin Enterprises hailed by analysts but shares fall

The shares nonetheless eased to €6.20 yesterday, leaving Origin down almost 18% since the start of 2016.

Releasing the trading statement that covers the three months to the end of October, the company said it had “an encouraging start” to the year.

Revenues rose by 11% to €333.6m from the same quarter a year ago, but acquisitions accounted for about two-thirds of the uplift. Underlying revenues rose by 1.3% when the dampening effects of currency translation costs were taken into account.

Origin has a presence in the UK, Poland, Ukraine, and Romania.

“Although sector sentiment remains subdued reflecting the current pressures on farm incomes, there has been an encouraging start to trading in the seasonally quiet first quarter,” it said.

There was “a solid foundation for the seasonally more important second half of the financial year”, it said.

Merrion Capital analyst Darren McKinley raised his price target to €6.75. Cathal Kenny at Davy Stockbrokers said that excluding its mostly Polish-focused grain marketing activities, underlying revenues rose by 7.2%. The broker has an “outperform” call on the shares.

Jason Molins at Goodbody Stockbrokers said it was “encouraged”, but was “unlikely to make material changes” to its forecast right now.

More in this section

Price info
Price info

Subscribe to unlock unlimited digital access.
Cancel anytime.

Terms and conditions apply

Budget 2022 Logo

What impact will this  year's budget have on you and your business.

The Business Hub

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Puzzles logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day. PS ... We would love to hear your feedback on the section right HERE.

News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up

Our Covid-free newsletter brings together some of the best bits from irishexaminer.com, as chosen by our editor, direct to your inbox every Monday.

Sign up