Citi cuts Australia's Elders Ltd PT on weaker FY24 guidance

Elders

21/08/2023 22:44

** Citi slashes price target for Australia's Elders Ltd  ELD.AX  to A$6.00
from A$6.85 on dim FY24 guidance; remains "sell" rated
    ** The agribusiness had said that it expects FY23 underlying earnings before
interest and tax between A$165 million ($105.78 million) and A$175 million, down
from a prior outlook of A$180 mln and A$200 mln, driven by weaker-than-expected
rural products sales, among others  urn:newsml:reuters.com:*:nL4N3A205M
    ** Citi trims its FY23 underlying EBIT to A$166 mln, at the bottom end of
ELD’s revised guidance to reflect cautious near-term outlook across the
industry
    ** "While ELD’s earnings downgrade has not been surprising, we are surprised
by its quantum," analysts say 
    ** The broker sees further downside risk for the agribusiness industry,
total addressable market for ELD likely declining in the near term
    ** Four of 11 analysts rate the stock "buy" or higher, six "hold" and one
"sell" or lower; their median PT is A$8.39 – Refinitiv data
    ** Stock had fallen ~37.4% this year, as of last close

($1 = 1.5598 Australian dollars)

 (Reporting by Archishma Iyer)
 ((Archishma.Iyer@thomsonreuters.com;))