Elders H1 Result Disappoints with Rising Corporate, Transformation Costs, Elevated Leverage, Jefferies Says
Elders' (ASX:ELD) first half result disappointed with rising corporate and transformation costs coupled with elevated leverage, Jefferies said in a Thursday note. Australian agricultural conditions are expected to deteriorate, with the Bureau of Meteorology noting El Niño conditions in the tropical Pacific are causing below-average July-to-September rainfall across most of the south, west, and parts of the east. This has driven fiscal year 2026 to fiscal year 2028 earnings-per-share cuts of 20%, 14%, and 2%, respectively. Gross value of agricultural production is expected to fall by 5% to AY$98 billion in 2026 to 2027. While higher global crop prices may provide an offset, rising input costs and a higher Australian dollar may put pressure on profitability. The investment firm has a hold rating on Elders with a reduced price target of AU$6.15 per share from AU$7.80 per share.
Elders' (ASX:ELD) first half result disappointed with rising corporate and transformation costs coupled with elevated leverage, Jefferies said in a Thursday note.
Australian agricultural conditions are expected to deteriorate, with the Bureau of Meteorology noting El Niño conditions in the tropical Pacific are causing below-average July-to-September rainfall across most of the south, west, and parts of the east.
This has driven fiscal year 2026 to fiscal year 2028 earnings-per-share cuts of 20%, 14%, and 2%, respectively.
Gross value of agricultural production is expected to fall by 5% to AY$98 billion in 2026 to 2027.
While higher global crop prices may provide an offset, rising input costs and a higher Australian dollar may put pressure on profitability.
The investment firm has a hold rating on Elders with a reduced price target of AU$6.15 per share from AU$7.80 per share.