After upgrading to Hold in January Deutsche Bank has now upgraded Nufarm to Buy, as the stock is now trading at a -16% discount to valuation.
The broker’s valuation does not yet ascribe any value to Omega-3 canola and some delay for the acquired earnings to flow has also been allowed.
Nufarm is now trading at a -23% discount to the 10-year average of the one-year forward relative operating earnings (EBITDA) multiple, and at a -20% discount on a relative PE multiple basis.
Sector: Materials.
Target price is $6.00.Current Price is $5.34. Difference: $0.66 – (brackets indicate current price is over target). If NUF meets the Deutsche Bank target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
