Morgan Stanley cuts Muyuan Foods targets as recovery is pushed to 2027
The bank also pushed back its cycle-recovery assumption to 2027 and lowered its 2026 earnings forecast to a loss of RMB0.72 per share.
The bank also pushed back its cycle-recovery assumption to 2027 and lowered its 2026 earnings forecast to a loss of RMB0.72 per share.
The report said near-term earnings remain under pressure from weak pig prices and the delayed cycle. Even so, Morgan Stanley still views Muyuan as the sector's top leader because of its cost structure, with MSY at 25, and kept an positive rating rating.
The note cited three potential catalysts: second-half industry destocking, signs that pig prices are bottoming out, and continued improvement in cost efficiency.
The report said near-term earnings remain under pressure from weak pig prices and the delayed cycle. Even so, Morgan Stanley still views Muyuan as the sector's top leader because of its cost structure, with MSY at 25, and kept an positive rating rating.
The note cited three potential catalysts: second-half industry destocking, signs that pig prices are bottoming out, and continued improvement in cost efficiency.