Nufarm's HY profit to fall due to less favourable markets - Jefferies

Nufarm

16/05/2023 20:40

** Analysts at Jefferies estimate agricultural chemicals
maker Nufarm Ltd's  NUF.AX  half-year profit to drop due to less
favourable markets
    ** Brokerage hikes PT by 8% to A$5.80, retains "hold" rating
    ** Jefferies forecasts HY EBITDA of A$290 mln ($196.71 mln)
vs A$330 mln last year
    ** Brokerage sees HY net profit after tax at A$105 mln and
EPS (post hybrid) of 26.5 Australian cents, both down 22%
    ** Jefferies says company's decision to build inventory
could see margins come under pressure given the negative trends
in selling prices
    ** Longer term, expect NUF to underline that it remains on
track to hit its FY26 aspirational targets, which is key -
Jefferies
    ** 6 of 11 analysts rate the stock "buy" or higher, 5
"hold"; median PT A$6.80 – Refinitiv
    ** Stock down 12.7% this year, as of last close

 ($1 = 1.4743 Australian dollars)

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com))