Financial analysts at Morningstar have increased the fair value estimate for Australian poultry producer Inghams Group (ASX:ING) by 6% to A$3.70 following the announcement of its FY23 results.

Inghams recorded significant gains on the back of a substantial final dividend paid to shareholders, driven by surging poultry prices.

The firm’s FY23 EBITDA was 2% above Morningstar’s estimate, reaching A$434 million.

Given the positive industry dynamics, Morningstar anticipates a further enhancement in the company’s profitability in the 2024 fiscal year.

Additionally, the brokerage notes that population growth, increasing per-capita chicken consumption, and consistent margin recovery could bolster Inghams' performance.

Inghams Group’s (ASX:ING) stock has experienced an 11.5% increase this year, as of its most recent closing.

Inghams Group (ASX:ING) is a major producer of poultry in Australia.