Weather change in Australia could boost Elders' earnings, says Citi

Elders

26/05/2025 19:37

** Elders ELD.AX on Monday logged HY underlying EBIT of A$64.3 million ($41.69 million), missing market estimates

** Citi says that dryness in South Australia and Victoria impacted the agribusiness co's earnings by A$10-12 million

** Notes potential scepticism around co's optimistic outlook for 2H and beyond

** However, Citi sees sequential upside catalysts for 2H in sustained momentum in livestock and real estate services, others

** Also expects further upside to be possible from increased post-emergent crop protection demand in both regions if weather changes

** Brokerage maintains 'Buy' rating, cuts price target to A$8.60/share due to lower EPS forecasts, others

** 4 of 7 analysts rate the stock "buy" or higher, while 3 as "hold"; their mean PT is A$8.60 – LSEG data

** Stock down 14% YTD

($1 = 1.5423 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))