Nufarm has guided to strong earnings growth of roughly 40% at the guidance-midpoint at its trading update, says UBS, well above consensus forecasts.
Good agricultural conditions and favourable commodity prices contributed to the jump. The company also guided to a first-half skew.
UBS upgrades EPS forecasts 19% in FY22 and 12% in FY23.
Buy rating retained, UBS considering the valuation to be undemanding. Target price rises to $7.90 from $6.73.
Sector: Materials.
Target price is $7.90.Current Price is $6.59. Difference: $1.31 – (brackets indicate current price is over target). If NUF meets the UBS target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
