Citi rates NUF as Buy (1) - Citi assesses Nufarm is currently emerging from a tough three years for the agricultural industry. At 5x enterprise value/EBITDA estimates for FY21 the broker considers the stock is good value.
There is also a strong balance sheet post the sale of the Latin American business. Moreover, commercialisation of Nuseed's omega-3 canola provides the long-term growth option.
Global peers have provided positive indications over the September quarter, particularly from Europe and Asia Pacific. Buy rating and $5.30 target maintained.
Target price is $5.30 Current Price is $3.49 Difference: $1.81 If NUF meets the Citi target it will return approximately 52% (excluding dividends, fees and charges). Current consensus price target is $4.96, suggesting upside of 42.1%(ex-dividends)The company's fiscal year ends in July.
Forecast for FY21:
Citi forecasts a full year FY21 dividend of 4.00 cents and EPS of 15.60 cents . At the last closing share price the estimated dividend yield is 1.15%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.37. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 9.5, implying annual growth of N/A. Current consensus DPS estimate is 1.8, implying a prospective dividend yield of 0.5%. Current consensus EPS estimate suggests the PER is 36.7.
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 9.50 cents and EPS of 29.80 cents . At the last closing share price the estimated dividend yield is 2.72%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.71. How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 19.0, implying annual growth of 100.0%. Current consensus DPS estimate is 5.3, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is 18.4.
Market Sentiment: 0.7All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources