Treasure Chest | Feb 10 2015
The story thus far
Shares in Capilano Honey ((CZZ)) have been on an absolute tear since late 2013 as investors took notice of the fact that Australia has a listed honey producer and marketer, with strong growth prospects. Over the period the share price has lifted from below $3 to surpassing $8.75 this week.
This week's results
Capilano's interim result revealed a jump in earnings per share of no less than 75% to 42c, carried by more sales, more cost volume benefits and higher product margins.
What's Next?
Canaccord Genuity, one of only few stockbrokerages actively covering the stock, was pretty much blown away by the strength on display. The analysts believe there's more on the horizon. They have lifted estimates by double digits (20%+), reiterated their Buy rating and lifted their twelve month price target to $10.18 from $8.79. This suggests there's still plenty of upside, despite the stellar run to date.
Capilano shares yesterday closed at $8.70. On current estimates the company will pay out 37c this year (FY15) and 42c next (FY16) implying dividend yields of 4.3% and 4.8% respectively. Last year's dividends paid were fully franked.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
