DAVY VIEW

We are lowering our FY25 adjusted EBITDA forecasts by c.5% to $380m (guidance: $370-380m) due to the short-term, knock-on impact of Storm Sara on H1-25 profitability. However, we remain confident in the set-up for FY26 and maintain our EBITDA forecast of c.$407m. We believe Dole’s current valuation fails to reflect the strong fundamentals of the business and the material ongoing progress made in deleveraging its balance sheet. We forecast group leverage to fall to c.1.5x and c.1.2x in FY25 and FY26 respectively. We reiterate our ‘Outperform’ rating and share price target of $19, implying c.31% upside to the current market price.