Macquarie hikes Elders' PT on prospects of better second-half earnings

Elders

21/05/2024 01:03

** Macquarie raises Elders Ltd's  ELD.AX  price target to
A$8.35 from A$8.25 as it expects earnings to recover in second
half of FY24
    ** Brokerage says agribusiness firm's 1H24 underlying NPAT
of A$14 mln was below its estimate of A$22 mln, impacted by
tough Q1, but ELD has seen improved profitability in 2Q
    ** Macquarie says, ELD's 2H requires strong uplift vs 1H,
for which key drivers are, expected improvement in retail
earnings, stabilisation in gross margins
    ** "Strong potential earnings growth in FY25, however, 2H24
needs to be delivered first," says Macquarie
    ** Elders' stock up 10.2% YTD, as of last close 
 

 (Reporting by Ayushman Ojha in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com;))