Elders: Too much uncertainty

About the author:

Author name:

By Belinda Moore

Job title:

Senior Analyst

Date posted:

16 May 2023, 8:00 AM

Sectors Covered:

Agriculture, Food & Beverage, Travel and Chemicals

• Elders (ASX:ELD) reported a weak 1H23 result (pcp was a very strong result) which was below consensus expectations. Costs continued to rise and cashflow disappointed.
• FY23 EBIT guidance at the midpoint was a 5% downgrade to consensus. However, rising interest expense means NPAT downgrades are more material. We have revised our forecasts accordingly.
• With earnings set to decline over FY23/24 as seasonal drivers revert and management uncertainty remains, we maintain a Hold rating with a price target of (login to view).

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