Agrogalaxy shares rallied on Wednesday, even after last year’s fourth-quarter results showed a 42.2% drop in net profit to 107.9 million reais, while total net revenue fell decreased by 29.2%.
Operating profit as measured by adjusted EBITDA fell 20.1% to 281.7 million reais, but the margin rose from 10.4% to 11.7%.
At 12.50pm, shares of the agri-food input, services and technology retail chain rose 7.06% to 1.82 reais, after reaching 1.87 reais at the session high . In 2024, however, they will still accumulate a decline of around 50%.
Bradesco analysts, in a note to clients, underline that Agrogalaxy reported an Ebitda lower than market forecasts, with a performance penalized by the delay in sowing soybeans, which also affected revenues.
They also said that the shares have accumulated a sharp decline over the year due to concerns about the company’s profitability, but that they expect an improvement in this metric in 2024. “Therefore, we maintain our recommendation of ‘outperform’ and the target price of 15 reais.”
Source: Terra
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