[25 May/Otago Daily Times]

According to Craigs Investment Partners, Comvita would take another two years to reach its $400 million sales target after two poor seasons in a row. It downgraded its recommendation from buy to hold. Comvita lowered its forecasted annual earnings due to adverse weather. The stock price fell sharply since Comvita said it had pulled out of talks with a counterparty after failing to reach a deal on the price. Craigs Research Analyst, Aldrin Allbon, said they liked the Comvita thematic of becoming a more reliable premium branded manuka honey targeting the Chinese consumer. He cut his outlook on the stock due to two short harvests which materially impacted profitability. He noted they thought it would be difficult for Comvita to deliver its sales target of $400 million by 2021 given lowers sales and depressed profitability.