Nufarm (ASX:NUF) is experiencing a stabilization of its core Crop Protection (CP) markets, with double-digit growth expected in fiscal 2026, Jefferies said in a note on Wednesday, as it raised its earnings forecast.
The brokerage boosted its earnings before interest, taxes, depreciation, and amortization (EBITDA) estimates by 5% for both fiscal 2026 and 2027, on the back of better-than-expected trading conditions in North America and Europe, along with lower corporate costs.
The agricultural-chemical company reported a fiscal year 2025 loss of AU$0.116 per share, excluding material items, compared with AU$0.063 per share a year earlier, broadly in line with Jeffries' estimates.
"We believe risks around leverage have abated with the more supportive CP backdrop and measured capital allocation outlook removing material downside risks," analysts at Jefferies commented.
Jefferies upgraded Nufarm to hold from underperform and raised its price target to A$2.22 from A$2.07.
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