Ann: Ridley Delivers a 20% Uplift In Earnings, page-18

magic glen
The 150-160 target is a conservative one based on a increase in earnings of 1 c and no PE expansion . You add in the dividend yield and you are nearing 20% . I do think however that what we may see over the year is a PE expansion along with earnings growth. Take NUF for example - there share price over 14 months has doubled , about 40% due to earnings growth and the rest due to PE expansion. I also think RIC is in a position now that growth through acquisition is highly likely and if, as they state in their annual report they acquire businesses which are earnings accredititive that would push SP much higher.
In addition you first assumption is also true that I am looking at RIC as a LT hold. I am big believer in agricultural exposure and I like companies like Tassal , Nufarm, Bellamy select harvest, Mguinan wines, however RIC seems to me to be the most diversified, has a low debt profile and being a food supplier both locally and globally for the animals , is also a little more insulated from extreme weather events. My average entry is 128. ( bought my first lot on Thursday and the rest on Friday )