All Analysts Cut F&N Target Price After Results Briefing, Warns Agrivalley Breakeven May Slip Beyond FY28

StockTipRatings · November 10, 2026

TA Securities analyst Liew Yi Jiet downgraded Fraser & Neave Holdings to “Hold” from “Buy”, cutting his target price to RM24.80 from RM32.80, implying 11.6% upside. Following the company's results briefing, he expects only a modest earnings recovery in FY27 as prolonged Agrivalley start-up losses, elevated commodity costs and continued weakness in Thailand constrain profitability.

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Liew believes Agrivalley’s operating breakeven could extend beyond his earlier FY28 assumption. Management is prioritising consistent milk yields, breeding-cycle optimisation and feed quality before accelerating herd expansion, warning that premature scaling could magnify losses. Feed remains the farm’s largest variable cost per litre, while potential El Niño conditions could weaken crop yields and increase reliance on imported feed.

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Although Malaysian-sourced products and local production are supporting Cambodia’s recovery, Liew expects the improvement to only partially offset Thailand’s weakness. Higher input costs and adverse currency movements also limit the recovery. He cut FY27–FY28 earnings forecasts by 20.7% and 16.2%, respectively, projecting core net profit of RM401.3 million and RM445.9 million, compared with RM385 million in FY26.

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Separately, Kenanga Investment Bank analyst Thin Yun Jing downgraded F&N to “Market Perform” from “Outperform”, cutting her target price to RM23.50 from RM24.50. Following an 11% share-price rally over the preceding week, she sees limited near-term catalysts as AgriValley and the Cambodia factory take longer to contribute earnings. She also noted that management did not reaffirm its earlier 2028 breakeven target for AgriValley.

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As of 9:30 a.m. on November 10, Fraser & Neave Holdings’ share price rose 0.1% to RM22.24.

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