GrainCorp Ltd (ASX: GNC) shares suffered a horrible week last week.
The company is an integrated grain and edible oils business.
It is the largest grain storage and handling business in ECA and the number one edible oil processor and oilseed crusher in Australia and New Zealand.
On Wednesday, its stock price fell as much as 20%, before recovering to end the day down 12%.
Its share price fell again on Thursday and Friday, to end the week down more than 16%.
Why did the share price fall?
Shareholders were dumping GrainCorp shares last week after it announced the sale of non-core asset GrainsConnect Canada.
According to the media release, GrainCorp and Zen-Noh Grain Corporation have agreed to sell their joint venture GrainsConnect to Parrish & Heimbecker for C$150 million on a cash-free, debt-free basis, following a strategic review prompted by challenging financial performance.
GrainCorp expects to recognise a loss of approximately A$5â10 million, with no impact on its through-the-cycle EBITDA, and completion of the transaction is anticipated in the first half of 2026.
GrainCorp’s Managing Director and CEO, Robert Spurway, commented:
This transaction reflects GrainCorp’s ongoing commitment to portfolio optimisation and our readiness to rationalise assets where necessary to improve returns.
Divestment of GrainsConnect allows GrainCorp to focus on alternative value-creating opportunities that are in the best interests of our shareholders.
Following the sell-off, there could be an opportunity for investors to swoop in and snap these shares up at a discount.
Here’s Morgans view.
GrainCorp shares oversold
In a note out of Morgans on Thursday, the broker said grain receivals have been lower than expected and the grain trading margin environment has deteriorated.
We have reduced our below consensus FY26 EBITDA forecast by 7%. With payments to the insurer no longer required in big crop years, GNC’s strong fixed cost leverage should return when crop production issues around the world ultimately eventuate.
The team said while GrainCorp is lacking near-term share price catalysts, it believes the stock has been oversold.
Morgans maintains its accumulate recommendation with a new price target of A$8.05.
From Friday’s closing price of $7.04, this indicates an upside of 14.35%.
Morgans isn’t the only broker suggesting GrainCorp shares could be a value.
Macquarie has a price target of $8.30, suggesting roughly an 18% upside.
The post What is Morgans’ view on GrainCorp shares after monster sell-off? appeared first on The Motley Fool Australia.
Should you invest $1,000 in GrainCorp Limited right now?
Before you buy GrainCorp Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and GrainCorp Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 18 November 2025
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- Macquarie tips more than 20% returns for this ASX 200 stock after a sharp sell-off this week
- Why DroneShield, Graincorp, Treasury Wine, and Woodside shares are sinking today
- Guess which ASX 200 stock is crashing 20% today
- GrainCorp sells GrainsConnect Canada and updates on FY26 crop volumes
- Macquarie names 3 top dividend-paying ASX 200 shares to buy today
Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Leave a Reply