Australia's Nufarm to benefit from strong demand, pricing - Citi

Nufarm

14/09/2022 23:11

** Citi sees Australia's Nufarm Ltd  NUF.AX  benefiting from
a bullish agriculture market outlook; raises price target to
A$6.40 from A$6.30
    ** Brokerage believes the agricultural chemicals maker
should benefit from higher grain prices in a tight supply
market, a favourable rainfall for summer crop production and
strong 2Q22 results; maintains "buy" rating
    ** Views positive commentary on demand and pricing from
chemicals manufacturer FMC Corp  FMC.N  and seeds and pesticides
maker Corteva Inc  CTVA.N  as a positive for NUF, a
significantly smaller player
    ** Brokerage also updates FX assumptions that led to 3%
average increase in core NPAT estimates for FY22-24 for NUF;
marginally increases EBITDA estimates over FY22-24
    ** Four of 12 analysts rate the stock "buy" or higher, seven
"hold" and one "sell"; their median PT is A$6.40 – Refinitiv
data
    ** Stock has risen 10.7% this year

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))