China's move against pork won't hurt Maple Leaf Foods

by 5m Editor
19 September 2007, at 11:15am

CANADA - China may have removed Maple Leaf Foods Inc.'s Brandon pork facility from its approved supplier list after two shipments from that location were found to contain a forbidden growth stimulant, but Octagon Capital analyst Robert Gibson doesn't think it will impact the company's bottom line.

Maple Leaf 's exports to China are insignificant and will no longer be a factor to its revenues once the company is fully integrated, he said in a note to clients. However, there may be a small charge if Maple Leaf cannot resell the returned pork chops, Mr. Gibson said.

He maintained his "buy" recommendation and $18 target price, as well as his 40¢ and 92¢ earnings per share forecast for 2007 and 2008 respectively. The stock (MFI/TSX) closed at $16.10 yesterday.

Source: NationalPost

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