DMG cuts target on Yamada

Stock Name: Yamada
Company Name: YAMADA GREEN RESOURCES LIMITED

Research House: DMG

Price Call: BUY

Target Price: 0.30

DMG & Partners Securities cut its price target on mushroom grower Yamada Green Resources to $0.30 from $0.32 and maintained its buy rating.

Yamada shares have risen around 8% so far this year

Yamada’s third-quarter net profit of 82 million yuan ($16.5 million), below DMG’s projected 97 million yuan, was due to wet weather that affected mushroom yield, as well as higher costs of production.

DMG reduced its earnings estimates by 11% for Yamada’s 2012 fiscal year to 162 million yuan and by 12% for 2013 to 176 million yuan.