Fund Manager Summary on Select Harvests Ltd (ASX:SHV)
Select Harvests Ltd (ASX:SHV) has garnered a consensus view suggesting a positive outlook amid improving market fundamentals, despite recent share price volatility. Fund managers highlight that while Select Harvest's almond prices are projected to rise, driven by strong global demand and tightening supply—particularly from the US—the company faces near-term challenges, including frost damage impacting crop volumes and rising input costs. The company's recent refinancing and balanced operations position it well for the future, with decreased net debt and improved processing capabilities boosting profitability. With a target price suggesting potential upside, managed production levels, a favorable cost position compared to competitors, and strategic initiatives aimed at enhancing operational efficiency, Select Harvest is well-placed to benefit from anticipated higher almond prices while remaining watchful of market pressures and operational risks.
Commentary From The Managers
There are 7 insights from 3 fund managers regarding their investment in Select Harvests Ltd (ASX:SHV) available on Thesis Tracker.
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Commentary From The Managers
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in Select Harvests Ltd (ASX:SHV)?
Fund managers including Collins St Asset Management, Perpetual Asset Management and Tamim Funds Management have invested in Select Harvests Ltd (ASX:SHV).
Why do fund managers invest in Select Harvests Ltd?
Fund managers invest in Select Harvests Ltd primarily due to its strong position in the almond market, characterized by a competitive cost structure and robust demand. Despite lower yields from recent frost damage, improving almond prices reflect favorable supply dynamics, especially against declining US production. The company’s strategic initiatives have enhanced efficiency, driving profitability and cash flow generation. Additionally, with reduced debt and plans for future growth, Select Harvests offers an attractive risk/reward profile, positioning it well for potential price appreciation.
What happened to Select Harvests Ltd (ASX:SHV)?
Fund managers are investing in Select Harvests Ltd (ASX: SHV) due to increasing global demand for almonds and structural shifts in the U.S. market leading to reduced supply and higher prices. The company showcases strong cash flow and profitability, underpinned by cost competitiveness in Australia and enhanced processing capabilities. Select Harvests is strategically managing its crop pricing and reducing debt, which positions it well for future earnings growth. With anticipated positive market conditions and disciplined cash management, fund managers view SHV as a solid investment opportunity.
What is the short interest in Select Harvests Ltd (ASX:SHV)?
The short interest in Select Harvests Ltd (ASX:SHV) is 2.23% which makes it the 118th most shorted stock on the ASX. Of the 142.1M shares that Select Harvests Ltd has on issue, 3.2M have been sold short.
What does Select Harvests Ltd (ASX:SHV) do?
Select Harvests Ltd. engages in the processing, packaging, marketing, and distribution of edible nuts, dried fruits, seeds, and a range of natural health products. It operates through following segments: Sale of Goods, Management Services, and Government Grant and Other Revenue. The Sale of Goods segment refers to the when the goods are shipped to the customer or when the services have been provided. The Management Services segment offers services provided for the management and development of farms as well as acting as sales agent for external growers by selling almonds on their behalf. The Government Grant and Other Revenue segment represents the assistance by the government in the form of transfers of resource to the group. The company was founded in 1978 and is headquartered in Richmond, Australia.