SYDNEY — GrainCorp Ltd. shares rose Monday in the wake of its recent earnings upgrade and increasing demand for Australian grains as the war in Ukraine continues to disrupt global supply chains.
Shares of the Australian wheat exporter hit a record A$9.83. The stock was last up 6.0% at A$9.74.
GrainCorp on Friday raised its earnings guidance for the fiscal year 2022, saying disruption from the conflict in Ukraine was increasing demand for Australian grain and oilseeds.
In addition to supply shortages in the Northern Hemisphere, two recent bumper crops on Australia’s east coast have also supported demand, the company’s Managing Director and Chief Executive Robert Spurway said.
Analysts have raised the company’s target price and ratings following the earnings upgrade.
UBS analyst Apoorv Sehgal on Monday increased Graincorp’s target price 9% to A$8.90, while Bell Potter analyst Jonathan Snape raised the target price 29% to A$8.65 and raised the stock’s rating to hold from sell.
According to Bell Potter, crop planting conditions on the east coast of Australia are favorable, while uncertainty remains in the key regions of the U.S. and the Mediterranean.