Australia's Nufarm shares remain undervalued, says Morningstar

Nufarm

27/03/2023 21:10

** Analysts at Morningstar see Nufarm Ltd's  NUF.AX 
underlying EBITDA growth forecast for fiscal 2023 as "modest"
amid favourable agricultural conditions across major
grain-producing regions
    ** Morningstar slightly increases its fiscal 2023 EBITDA
expectation for the Australian agricultural chemicals maker to
A$457 mln ($303.40 mln) from A$451 mln estimated earlier
    ** Brokerage estimates fiscal first-half EBITDA to fall 17%
to A$265 mln; but sees second-half EBITDA to jump 45% to A$193
mln
    ** Nufarm's shares at around A$5.50 remain undervalued, says
brokerage; keeps its fair value estimate unchanged at A$7.50 for
NUF
    ** Morningstar sees revenue from company's crop protection
segment to grow 14% to A$3.9 bln by fiscal 2026; sees revenue
from seed and technology to more than double to A$650 bln in the
same year
    ** Six of 11 analysts rate stock "buy" or higher, 5 "hold";
median PT is A$6.80 – Refinitiv
    ** Stock down 10.0% so far this year, as of last close


($1 = 1.5063 Australian dollars)

 (Reporting by Udbhav Krishna P in Bengaluru)
 ((UdbhavKrishna.P@thomsonreuters.com;))