Morgan Stanley expects earnings will improve from a difficult FY20. Results were in line with previous guidance. Europe was the key area of earnings weakness but management is confident that FY20 will be the trough.
Nufarm has also secured the first commercial sale of omega-3 canola oil to a global salmon producer and expects the initial contract will generate $30m in revenue. This brings the business a little closer to unlocking attractive potential, Morgan Stanley suggests.
Overweight. Target is $4.80. Industry view: Cautious.
Target price is $4.80.Current Price is $4.27. Difference: $0.53 – (brackets indicate current price is over target). If NUF meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).