Nufarm: Outperforming peers but headwinds remain

About the author:

Author name:

By Belinda Moore

Job title:

Senior Analyst

Date posted:

28 September 2023, 7:30 AM

Sectors Covered:

Agriculture, Food & Beverage, Travel and Chemicals

• Unsurprisingly, Nufarm (ASX:NUF) has revised its FY23 EBITDA guidance. While NUF has been a beneficiary of a lower AUD, its FY23 performance has been stronger than peers.
• Given the timing of sales, NUF will now report a large operating cash outflow and its gearing metrics will be above its target range.
• We have downgraded our forecasts. With dry conditions forecast in APAC, earnings uncertainty remains near term. We therefore maintain a Hold rating. However we note there is material upside if NUF delivers on its FY26 targets.

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