Origin reported a 3.9% year-on-year rise in revenues, to €346.7m, for the three months to the end of October — the first quarter of its current financial year.
“We expect consensus to raise their 2018 net income forecasts post this solid trading update”, said Merrion analyst Darren McKinley, who has a price target of €7.25 on the Origin stock which was up marginally at around €6.73 yesterday.
“In what is a seasonally quiet period for the group, the first quarter planting out-turn provides a good foundation for the year ahead with overall trading performance described by management as satisfactory.
In a competitive market, Origin achieved higher demand for agronomy service and inputs in the period,” said Davy analysts Cathal Kenny and Roland French in a research note.
For the quarter, Origin saw near 10% underlying growth in its Ireland and UK division, and 13.5% in continental Europe.
On the back of the update, Goodbody Stockbrokers upped its earnings per share forecasts for Origin’s current financial year by around 2% to 47.9c and said it maintains a positive stance on the stock.
“Importantly, autumn and winter crop planting in the UK is forecasted to be 2.8% ahead of last year, which provides a good platform for the seasonally important second half of the year,” said Goodbody’s Jason Molins, who has upped his price target for the stock to €7.50.