Analysts at CCZ Equities Research have placed a hold rating on emerging agribusiness company Webster Limited Fully Paid Ord. Shrs (ASX: WBA) on the belief its water entitlements will de-risk its 2019 crop from margin erosion.
According to CCZ, Webster's ownership of water entitlements provides a competitive advantage, with the company able to generate record cotton harvests and walnut plantation growth by utilising its own internally-owned water entitlements.
CCZ has a $1.96 price target on the stock – up from $1.74 – with Webster shares opening the trading week at $1.82 – down from its 52-week high of $2.02 on June 19 but well up from its $1.39 share price at this time last year.
Elsewhere in the agribusiness space, short-selling activity in Australian Agricultural Company Ltd (ASX: AAC) shares appears to be declining as there is perhaps some market confidence that the company will have a better FY19 after a disappointing FY18.
While crop protection company Nufarm Limited (ASX: NUF) has seen some share price volatility – opening at $8.93 today – well down from its price of $9.61 at this time last year.
