Analysts at investment bank Goldman Sachs adjusted their Costa Group Ltd (ASX: CGC) share price rating to $5.75 on the back of its interim profit report and retained a buy rating recently, with the stock sitting at $5.02 today.
Costa Group is the fruit and vegetables grower with a decent track record since hitting the ASX boards back in July 2015 at an issue price of $2.25 per share.
The only blot for Costa was a large profit downgrade handed down in January 2019 that saw the stock tumble from $7.37 to $4.51 in a single trading session.
However, the Goldmans analysts are comfortable that the company's recent problems around lower pricing for core berry, citrus, and avocado products are cyclical in nature, with demand set to support prices over the medium term.
Goldmans also flagged the potential for further international expansion, new growing technologies, and robust demand to continue to support the group's operations.
Costa shares may prove medium-term market beaters if Goldmans' analysis is on the money.
