Elders’ first-half net profit at $67m was higher than Macquarie’s expected $59m. The result was driven by a mix of seasonal conditions, bolt-on acquisitions and organic growth, highlights Macquarie.
The broker is pleased and notes the company is “firing on all cylinders” with growth seen across all state geographies and product lines. Going ahead, the broker expects the strong first-half result to flow through to the second half.
Outperform rating with the target rising to $14.11 from $13.80.
Sector: Food, Beverage & Tobacco.
Target price is $14.11.Current Price is $11.81. Difference: $2.30 – (brackets indicate current price is over target). If ELD meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
