BUZZ-Citi upgrades Elders to 'buy' on expectations of near-term improvement

Reuters04-09

** Citi increases PT for agribusiness firm Elders to A$8.50 from A$7.30, rating to "buy" from "neutral"

** Brokerage trims FY24 underlying earnings before interest and tax (EBIT) forecast by 26% to A$130 mln ($85.83 mln)

** Citi does not expect impact of underperformance in 1H FY24 to linger in FY25 with underlying EBIT of A$179 mln in FY25 and A$193 mln in FY26

** "However, given earnings are now rebased with improving outlook in the near-term, we think ascribing higher valuation multiples is appropriate at this juncture," says brokerage

** Four of 11 analysts rate stock "buy" or higher and seven "hold"; their median PT is A$9 – LSEG

** Stock down 1.3% this year, as of last close

($1 = 1.5147 Australian dollars)

(Reporting by Megha Rani in Bengaluru)

((Megha.Rani2@thomsonreuters.com;))

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