Ridley Corporation ’s first-half result was “soft" but Citigroup analyst Tim Mitchell retains his “buy" recommendation, citing the animal feed producer’s appeal in mergers and acquisitions. He also see potential for a 10¢ to 15¢ capital return given cash from asset sales.

Mitchell values Ridley, in which Guinness Peat Group has a 23 per cent stake, at $1.12 per share based on a going concern assumption, and the combined Ridley business at $1.50 per share, under a takeover situation.