First NZ Capital grows dark on Fonterra as capital spend fails to spur earnings

Sun, 27 May 2018

By Rebecca Howard May 28 (BusinessDesk) - First NZ Capital has cut its rating on Fonterra Shareholders' Fund units as the dairy cooperative's seeming inability to convert capital investment into earnings growth and poor track record in adding value raises questions over its ability to retain domestic suppliers. Analyst Arie Dekker lowered his rating on the units, which give investors exposure to Fonterra Cooperative Group's earnings, to 'underperform' from neutral, and sliced 17 percent from his target price to $5.09. The units recently...

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