DAVY VIEW

We are lowering our FY26 and FY27 adjusted EBITDA forecasts by c.4% and c.2% respectively, reflecting the knock-on impact of the Middle East conflict and the lagged nature of recovery mechanisms. Despite the prevailing macro headwinds, we believe Dole has become materially de-risked from both an operational and financial perspective. In our view, the group is now well positioned to invest for growth over the short to medium term, with tangible evidence of increased investment activity likely to be an important catalyst for a re-rating of the equity, which continues to trade at a significant discount to peers. We maintain our ‘Outperform’ rating and $21.5 share price target (c.50% upside).