UBS says management uncertainties likely weighing on Australia's Elders

Elders

05/12/2022 02:58

** Analysts at UBS say share price performance of
agribusiness Elders Ltd  ELD.AX  in the near term may be
challenged by management uncertainty after the current chief
executive officer and chief financial officer resigned  
    ** ELD shares fall as much as 7.2% to A$9.650, on track for
their lowest level since July. 2020 
    ** ELD announced the resignation of CFO Tania Foster in Aug
and in mid-Nov said CEO Mark Allison would be stepping down 
    ** UBS downgrades ELD's rating to 'neutral' from 'buy';
slashes price target to A$11.30 from A$15.00 
    ** "To return to a positive stance, we look for a greater
level of earnings growth visibility as well as future management
clarity" - UBS 
    ** UBS forecasts FY23 EBIT to decline by 12% to A$204
million ($139.47 million) on the back of reduced earnings from
Elders' agency business as cattle prices normalise, among others
 
    ** Five out of twelve analysts rate the stock 'buy', 5
'hold', and 2 'sell'; their median PT is A$12.45 - Refinitiv
Eikon data
    ** Stock down 15.2% this year, as of last close, vs a 1.9%
decrease in the benchmark S&P/ASX 200 index  .AXJO  
($1 = 1.4626 Australian dollars)
 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))