Citi upgrades Elders to 'buy' on expectations of near-term improvement

Elders

08/04/2024 23:39

** Citi increases PT for agribusiness firm Elders  ELD.AX 
to A$8.50 from A$7.30, rating to "buy" from "neutral"
    ** Brokerage trims FY24 underlying earnings before interest
and tax (EBIT) forecast by 26% to A$130 mln ($85.83 mln)
    ** Citi does not expect impact of underperformance in 1H
FY24 to linger in FY25 with underlying EBIT of A$179 mln in FY25
and A$193 mln in FY26
    ** "However, given earnings are now rebased with improving
outlook in the near-term, we think ascribing higher valuation
multiples is appropriate at this juncture," says brokerage
    ** Four of 11 analysts rate stock "buy" or higher and seven
"hold"; their median PT is A$9 – LSEG
    ** Stock down 1.3% this year, as of last close

($1 = 1.5147 Australian dollars)

 (Reporting by Megha  Rani in Bengaluru)
 ((Megha.Rani2@thomsonreuters.com;))