Bell Potter raises Australia's Nufarm's PT on volume growth and margin recovery

Nufarm

18/03/2025 24:49

** Shares of crop protection manufacturer Nufarm NUF.AX extends gains, rising 2.34% to A$3.93, their highest level since March 4

** Analysts at Bell Potter increase target price to A$4.75 from A$4.35; maintains "buy" rating

** Brokerage highlights a stabilisation in net selling prices and robust volume growth, with a 12% YoY increase in 1Q25, marking the second consecutive quarter of double-digit volume growth

** Says gross margins also show strong recovery, up 586 bp YoY, returning towards historical levels

** Bell Potter sees valuation as undemanding, particularly given a recovery in secular demand and gross margins, positive initial crop production forecasts in the EU & UK, others

** 3 of 11 analysts rate the stock "buy", 7 as "hold" and 1 as "strong sell"; their mean PT is A$4.62 — LSEG data

** Stock up 11.3%

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk))