Elders looks well-positioned to provide a “solid” first half result, in Citi’s view, led by strong demand for rural products from favourable cropping conditions and tight crop input markets.
The broker expects the first-half operating income to be $80m, up 9% over last year, and in line with consensus. Citi expects the second half sales growth to be 11% with an operating income of $101m driven by continued growth in sales of rural products.
Buy rating retained with a target of $13.20.
Sector: Food, Beverage & Tobacco.
Target price is $13.20.Current Price is $12.38. Difference: $0.82 – (brackets indicate current price is over target). If ELD meets the Citi target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
