Nufarm’s latest trading update on its performance during August and September shows better seasonal conditions and reduced costs that lifted Nufarm’s crop protection profitability in all regions, observes Credit Suisse.
Seed technologies were marginally weaker led by increased costs associated with commercialisation of Omega-3 and Carinata. Working capital continued to improve in October and substantial cash and undrawn funds were available.
Outperform rating retained with the target falling to $4.88 from $5.07.
Target price is $4.88.Current Price is $4.12. Difference: $0.76 – (brackets indicate current price is over target). If NUF meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).