Australia's Nufarm to benefit from favourable growth trends - Morningstar

Nufarm

22/09/2022 02:36

** Analysts at Morningstar see crop protection and seed
technology company Nufarm Ltd  NUF.AX  benefiting from recent
favourable megatrends
    ** Morningstar sees megatrends like population growth,
rising living standards, and necessity for increased yields to
be the predominant support for valuation for Nufarm 
    ** Brokerage adds that recent Russia-Ukraine conflict
heightens awareness of the growing importance of yield-enhancing
technologies the likes of NUF's offering
    ** Morningstar makes no change to fair value estimate of
A$7.0 for NUF
    ** Brokerage notes that co recorded an underlying net profit
after tax of A$133 mln for first for 1H22, an increase of 112%
compared to prior year and is yet to provide an updated guidance
 urn:newsml:reuters.com:*:nFWN2XA0UJ 
    ** Morningstar also notes recent acquisitions to expand co's
bioenergy segment has the potential to contribute to medium to
long-term earnings growth 
    ** Morningstar forecasts FY22 revenue of A$3.2 bln ($2.09
bln) and FY22 gross profit of A$445 mln for NUF
    ** Four of twelve analysts rate the stock "buy" or higher,
seven "hold" and one "sell"; their median PT is A$6.40 -
Refinitiv data
    ** As of last close, stock up 12.99% this year
    


($1 = 1.5090 Australian dollars)

 (Reporting by John Biju in Bengaluru)
 ((john.biju@thomsonreuters.com))