Analysts take a wait and see stance on Synlait

Synlait needs to show sustained signs of success in its cost-out initiative, Forbarr's Matt Montgomerie said. (Image: Synlait)

Rebecca Howard

Tue, 26 Sep 2023

Forsyth Barr retained a neutral rating on Synlait Milk after its full-year result while Jarden kept it at overweight. “We think the road ahead continues to look challenging, and balance sheet risks remain elevated if SML is unable to sell Dairyworks,” said ForBarr's Matt Montgomerie, in a note headlined “The Worst is Over?”.He believes the three key issues are high gearing, suppressed advanced nutritionals margins and elevated cost base.“Gearing will be elevated near term, and we believe investors need to...

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