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Jul 13 2021, 07:00 IST/BST
Market expectations for perpetual earnings deterioration overlook a credible and relevant business model and the evolution of Origin’s strategy under the new leadership team. Recent portfolio management initiatives highlight a more disciplined approach to capital allocation – with higher growth and value-add opportunities being prioritised. Model evolution over time will dilute the exposure to the UK arable farmer. A strong balance sheet offers significant optionality. We see over 40% upside to the equity over a 12-18-month horizon and reiterate our ‘Outperform’ rating.