Greencross (GXL) | Josh Kannourakis | We maintain our BUY recommendation on GXL post the proposed transaction with City Farmers

Greencross (GXL) | Josh Kannourakis | We maintain our BUY recommendation on GXL post the proposed transaction with City Farmers. Our target price has increased to $10.60 (prev. $9.60) post material upgrades to earnings. The stock is by no means cheap on absolute metrics, however we believe the long-term sustainable growth pipeline, leading market positioning post-acquisition and quality of management justify its significant premium to its domestic and international peers. (VIEW LINK)