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GTN [MARKET PERFORM +7.6%] - Dairy subsidiary Vilico takes over the driver’s seat - Update

Company Research

17 May 2017

We downgrade our rating on GTN to MARKET PERFORM with a total stock return of 7.6% as the stock has increased 6% since our last report. Q1 2017 EPS soared 188% YoY thanks to the newly consolidated dairy subsidiary Vilico (VLC). VLC’s dairy revenue and EBIT rose 17% and 37%, respectively, in Q1 2017 on GPM expansion and softening SG&A, in our estimation. Margins surpassed our previous projections.
Tags: GTN

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