Nufarm has announced an underlying earnings target of $600m in FY26, providing an early suggestion as to the size of its Carinata oil opportunity according to Credit Suisse and driving the broker to upgrade outer year earnings forecasts.
Credit Suisse finds Carinata conservatively modeled, noting it offers earnings benefits in excess of $100m per annum. The company also updated on crop protections, expecting $0.8-0.9bn net revenue growth in the segment by FY26 will benefit the earnings target.
The Neutral rating is retained and the target price increases to $6.14 from $5.01.
Sector: Materials.
Target price is $6.14.Current Price is $5.59. Difference: $0.55 – (brackets indicate current price is over target). If NUF meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
