Elders: Looking for a base

About the author:

Belinda Moore
Author name:
By Belinda Moore
Job title:
Senior Analyst
Date posted:
22 August 2023, 9:00 AM
Sectors Covered:
Agriculture, Food & Beverage, Travel and Chemicals

  • Unsurprisingly, Elders (ASX:ELD) has downgraded its FY23 EBIT guidance by 10.5% at the mid-point given key earnings drivers have continued to weaken during the 2H23. Pleasingly, cashflow conversion will likely be materially better than we expected.
  • 1H24 EBIT will likely fall again on the pcp given ELD is cycling a period of ag chem, fertiliser and livestock prices normalising. ELD also noted that customer sentiment has turned much more cautious in recent weeks given the deteriorating cropping outlook in light of the BOM’s dry outlook and El Nino alert.
  • Given the outlook for FY24 remains uncertain, we maintain a Hold rating with a revised price target of (login to view).

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