Genus’ update this morning indicates a trading outlook for the full year in line with expectations. Genus ABS has been negatively impacted by low dairy prices during the period since 1st July whilst Genus PIC royalties have been supported by increased pig production in key markets incl. the USA. Trading in Genus Asia has improved as a result of improved porcine prices in China. These trends are factored into our current forecasts. Adj PBT increased during the period in constant currency, in line with our expectation of 4.9% growth for the financial year to June 2016. We retain a target price of 1,442p and a Hold recommendation on valuation grounds.
