Inghams Group Ltd (ASX: ING) shares have been making headlines over the past week after investors heavily sold the poultry producers shares following earnings results.
Let's quickly recap what happened.
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Share price tumbles on earnings results
Inghams released interim FY26 results last Friday.
- Revenue of $1.61 billion for the 26 weeks to 27 December 2025, broadly flat year-on-year.
- EBITDA fell 33.8% to $139.2 million.
- Net profit after tax (NPAT) declined 64.9% to $18.1 million.
- On an underlying pre-AASB 16 basis, EBITDA was $80.6 million, down 35% on the prior corresponding period.
- Underlying NPAT (pre-AASB 16) fell 60.4% to $21.3 million.
Inghams reduced its FY26 underlying EBITDA pre AASB 16 guidance to $180 to $200 million, down from $215 to $230 million previously.
Investors were seemingly left disappointed by these results, as Inghams shares crashed 13% on Friday.
Some investors saw an opportunity to buy-low yesterday, as the share price recovered a little over 2%.
Inghams shares are now close to a 5-year low, and fresh guidance out of Morgans indicates it could be an attractive entry point.
Here's what the broker had to say.
Positive long term view
In a note out of Morgans over the weekend, the broker said the 1H26 result was weak, but in line with guidance.
It said as expected, gearing was above the Board's target range and FY26 guidance was revised by 13-16%.
Importantly, ING has now dealt with its excess inventory levels, core poultry volumes are back in growth, selling prices are higher than the pcp and normal production settings and improved network efficiency should result in a much stronger 2H26 vs 1H26.
The broker said the annualised benefit from these more normalised operating conditions should eventuate in FY27, resulting in a strong earnings recovery.
After the severe share price weakness, we upgrade to a BUY rating.
What are other experts saying about Inghams shares?
Inghams shares closed trading yesterday at $2.16.
It is down more than 14% year to date and roughly 37% over the last 12 months.
While upside may be limited, analysts see the current price as undervalued.
The average rating of 7 analysts via TradingView places a 1 year price target of $2.38 on Inghams shares.
That indicates an upside of 10.38% from current levels.
However, Inghams also just announced an interim dividend of 4 cents per share, which would translate to 3.75% yield over the year should it repeat.
Including this yield in 12 month projections, this could push the total upside over 14%.
