News SummaryDJ Elders's Share-Price Slump Ignores Solid Business -- Market Talk

ELD$10.69$0.48 (4.7%)$10.67$10.69

15 Nov 2022 10:07:285 Views2305 GMT [Dow Jones]

The savage selloff that greeted Elders's announcement that its managing director will retire next year ignored the solid business that he will leave behind, Shaw & Partners analysts say.

They tell clients in a note that the 23% share-price decline that followed the news looks overdone given that Mark Allison has built a business that can survive and thrive without him.

The Shaw analysts acknowledge that the Australian agribusiness faces some uncertainty in demand due to recent heavy rainfall in some cropping regions, but only trim their near-term earnings forecasts by between 5% and 10%. Shaw cuts target price 21% to A$15.10 but maintains a buy rating on the stock, which last traded at A$10.21. ([email protected])

(END) Dow Jones Newswires

Wow....if a ~22% sell down of ELD shares on a reasonable FY update isn't an overreaction then I don't know what is. Surely can't be because the CEO is retiring....after all isn't another year before he does??

Regardless.....to me the sell off and now algo trades have presented up a great buy.