The Globe and Mail reports in its Tuesday, Nov. 18, edition that RBC Dominion Securities analyst Andrew Wong has lowered his recommendation for Ag Growth International to "sector perform" from "outperform." The Globe's David Leeder writes that Mr. Wong slashed his share target by $25 to $25. Analysts on average target the shares at $44.71. Mr. Wong predicts "the combination of accounting questions and continued late-year guidance revisions stretching back to last year will continue to weigh heavily on investor sentiment." Mr. Wong says in a note: "The company has withdrawn previously issued 2025 guidance. Ag Growth has highlighted big project wins in Brazil as a significant driver for both commercial sales and the broader company order book. Management has attributed the company's ability to win big projects partly due to attractive financing options for customers. To facilitate these financings, the company has set up an investment fund to monetize the receivables. The company also changed the realization of large projects to track percentage of completion vs. realization when completed. The reason for the extended auditor reviews has not been detailed, but we think could relate to the above recent changes."
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