Nufarm

Nufarm (ASX: NUF) has been upgraded to Hold from Sell, by Citi, with a price target of A$4.20. Citi says "Whilst we remain cautious on the structural challenges and near-term earnings headwinds facing the company, we believe the current share price fall adequately reflects these risks."

Citi analyst Tim Mitchell says refinancing of A$600 million in syndicated term debt expiring in December remains outstanding while an equity raising can't be ruled out given NUF has more than A$850 million in total net debt. He also notes a stronger AUD provides a favorable environment to import agricultural chemicals, which helps to drive Citi's downgrade in earnings forecasts.

Nufarm is one of the world's leading crop protection companies which produces products to help farmers protect their crops against damage caused by weeds, pests and disease.

Nufarm grew quickly in previous years through both acquisition and solid organic growth which saw the business rapidly expand and debt levels increase. Post GFC, NUF raised capital via a dilutive equity raising which only partially addressed its debt problems.

Contact IRG on 0800 437 8489

**A disclosure statement is available, on request and free of charge by calling 0800 437 8489.

Recommendation sourced from the IRESS software trading platform

Disclaimer

In accordance with the Financial Advisers Act 2008 (“the Act”) Sharechat is “Class Advice” and any advice or recommendations contained on this webpage is not “Personalised Advice” as defined by the Act. This means Sharechat does not take into account an investor’s particular financial position, financial needs, financial goals or risk profile. Investor’s who require “Personalised Advice” should contact an Authorised Financial Adviser (AFA).

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

GEN - Completion of Purchase of Premium Funding Business
Fletcher Building Announces Executive Appointment
WCO - Director independence determination
AIA - welcomes Ngahuia Leighton as 'Future Director'
Mercury announces Executive team changes
Fonterra launches Retail Bond Offer
October 29th Morning Report
BIF adds Zincovery to its investment portfolio
General Capital Resignation of Director
General Capital subsidiary General Finance update