Macquarie initiates Bega Cheese stock with outperform rating

Published 11/06/2025, 17:18
Macquarie initiates Bega Cheese stock with outperform rating

Macquarie initiated coverage on Bega Cheese Ltd (ASX:BGA) with an outperform rating and a price target of AUD6.40, according to a research note released Wednesday.

The firm cited Bega’s potential to reduce costs through site rationalization and operational efficiencies, which Macquarie expects will drive gross margin improvement for the Australian dairy and food company.

Macquarie noted that Bega has demonstrated a track record of executing on its strategy, effectively managing costs, and reducing its manufacturing footprint in recent years.

Return on funds employed (ROFE) will be a key performance metric for the company, with management targeting 10% to 12% by fiscal year 2028, up from 7.9% reported in the first half of fiscal 2025.

Macquarie estimates Bega will achieve a ROFE of approximately 11.5% by FY28, aligning with the company’s stated targets.

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