Citi initiates coverage on Australia's Elders with 'sell' on weather headwinds

Elders

14/08/2023 24:47

** Analysts at Citi initiate coverage on Australian
agribusiness Elders Ltd  ELD.AX  with "sell" rating and price
target of A$6.85
    ** ELD last closed at A$7.540
    ** Brokerage says ELD is "high-quality agricultural play
with solid track record of backward integration and growth
through the cycle"
    ** Citi, however, says it sees potential headwinds such as
adverse weather, lower commodity prices, gradual growth in
livestock exports ahead
    ** Says sharp moderation in commodity prices one of the key
concerns in the industry
    ** Expects core net profit of A$110.1 mln ($71.49 mln) for
FY23 and A$104.9 mln for FY24, down from A$162.9 mln in FY22
    ** Four of 10 analysts rate ELD "buy" or higher, and six
"hold"; their median PT is A$8.57 – Refinitiv data


($1 = 1.5401 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))