Insights

Top broker tips huge returns from the Inghams (ASX:ING) share price

The Inghams Group Ltd (ASX:ING) share price is on form and has been tipped to climb materially higher from here by a leading broker…
The post Top broker tips huge returns from the Inghams (ASX:ING) share price appeared first on The Motley Fool Australia. –

The Inghams Group Ltd (ASX: ING) share price has been a positive performer again on Monday.

In afternoon trade, the poultry producer’s shares are up 3.5% to $3.53.

This means the Inghams share price is now up 12% over the last two trading sessions.

Why is the Inghams share price charging higher?

Investors have been bidding the Inghams share price higher since the release of its FY 2021 guidance on Friday.

For the 12 months ending 25 June, Inghams is forecasting statutory earnings before interest, tax, depreciation and amortisation (EBITDA) of $438 million to $448 million and statutory net profit after tax of $80 million to $87 million. This has been driven by the benefits derived from operational efficiencies implemented throughout the year and improved trading conditions.

Management also noted that the guidance was well-ahead of the analyst consensus estimates.

Can its shares keep on climbing?

One leading broker believes the Inghams share price still has a long way to run from here.

According to a note out of Goldman Sachs, its analysts have retained their buy rating and lifted their price target on the company’s shares to $4.50.

Based on its current share price, this implies potential upside of 27% over the next 12 months excluding dividends. And if you include dividends, this potential return stretches to ~34%.

What did Goldman say?

Goldman commented: “The ANZ Poultry market is improving and ING has issued a positive trading update as we head to a close in FY21. We have upgraded our FY21-FY23 EBITDA by +2-5% and EPS by +2-11%. While today’s announcement is specific to FY21 profitability, we expect some flow through to future years from the high earnings base. Our 12-month TP has increased +5% to A$4.50, implying 39% [prior to today] total return potential. We retain our Buy rating.”

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

Why Bravura, Costa, Inghams, & Propel shares are pushing higher

These are the 10 most shorted shares on the ASX

5 things to watch on the ASX 200 on Monday

These 2 growing ASX shares have upgraded guidance

ASX 200 surges to new record, Fortescue drops, Inghams flies higher

The post Top broker tips huge returns from the Inghams (ASX:ING) share price appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!