LONDON (ShareCast) - (ShareCast News) - Liberum upgraded animal genetics company Genus to 'buy' from 'hold' and kept the price target at 1,950p.
It noted the share price has dropped 9% over the last three months despite the outlook for the group remaining solid.

Liberum said trading was driven by structural royalty growth opportunities in Asia PIC and a strengthened position in EU PIC following the acquisition and partnership with Hermitage.

The brokerage also pointed to a gradual rise in Genus ABS market share under a new chief operating officer strengthening sales and strategy execution, an own proprietary dairy and beef nucleus herd, the launch of its proprietary sexed semen technology later this year, and development of the IVB's In Vitro Fertilisation technology and expansion of the customer base.

Liberum expects Genus to deliver a double-digit three-year forward earnings per share compound annual growth rate and forecasts an FX tailwind of around 10% on full-year 2017 earnings before interest and taxes.

The brokerage said Genus generates only about 10% of group sales and profits in the UK. In the first half of this year, the weaker pound brought a helpful translation benefit to reported results of £3.7m, mostly against the US dollar.

At 0955 GMT, the shares were up 2.5% to 1,793p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE