Citi raises Nufarm's PT, annual earnings view on strong demand, better pricing

Nufarm

17/11/2022 02:00

** Citi hikes price target on Australian agricultural
chemicals maker Nufarm Ltd  NUF.AX  to A$6.80 from A$6.40,
retains "buy" rating
    ** The broker hikes earnings estimate by 2% on average for
FY23/24 following a strong set of FY22 results
    ** Co reported FY statutory net profit after tax of A$107.4
million ($72.38 million) up 65% vs previous corresponding period
 urn:newsml:reuters.com:*:nL4N32C00O
    ** Brokerage adds it reiterates 'Buy' rating given
favourable seasonal conditions, better pricing, and a
strengthened capital structure, among others FY23 and beyond    
    ** Says FY22 results in line with — Underlying earnings
before interest, tax, depreciation and amortisation of A$447 mln
- up 17% on previous pcp; 5% below Citi and 1% below consensus
    ** Citi further adds demand for crop protection remains
strong, forecasts forecast A$3.8 bln of crop protection revenue
by FY26
    ** Five of 11 analysts rate the stock "buy" or higher, five
"hold" and one "sell"; their median PT is A$6.40 – Refinitiv
Eikon data 
    ** Stock up 21.7% this year as of last close    
($1 = 1.4839 Australian dollars)
 (Reporting by Udbhav Krishna P in Bengaluru)
 ((UdbhavKrishna.P@Thomsonreuters.com))