The fallout of Southcorp’s impending profit warning has begun with the investment bank ABN AMRO cutting its full-year operating earnings forecasts by 36%.
“We expect considerable weakness in Southcorp shares when they recommence trading on Monday. A share price of A$3 or even the high A$2 range is not out of the question,” said ABN AMRO analyst David Cook.
Southcorp shares, where put on a trading hold yesterday as the company prepared to make a statement on Monday. It is strongly expected this will include a downgrading by the company of its own profit expectations for the full year.
