ELDERS LIMITED (ELD)
Share Price Analysis and Chart

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19/05/2026

1

Buy

$6.50

15.66%

Following interim results for Elders, Citi remains attracted to the stock at current levels despite an earnings 'miss', citing a larger-than-average valuation discount and expectations elevated corporate costs will unwind in early 2027.

The resilience provided by the company's vertically integrated and diversified business model is another positive, in the analyst's view.

Buy rating retained. Target falls to $6.50 from $8.45. The broker now assumes a lower valuation multiple and downgrades EBIT forecasts by -11% and -18% over FY26-FY27, respectively, driven by higher corporate costs and the sale of the feedlot business.

A summary of the broker's research yesterday follows.

The broker also expects leverage to return to the target range during the second half of FY26.

Citi retains a Buy rating and $6.50 target price.

In a flash update, Citi notes Elders' 1H26 revenue came in 1% above consensus while earnings (EBIT) missed consensus expectations by -7% arising from higher corporate costs including IT. This is expected to continue into FY27.

Higher livestock prices boosted agency services gross profit, up 14.2%, and rural services gross profit advanced 4.5%, which is considered as a positive result against a challenging macro backdrop.

Management pointed to high livestock and wool prices as a positive. The analyst points to dry conditions in northern NSW as a potential impact on crop protection volumes.

Stock is expected to trade down on higher corporate costs.

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21/05/2026

3

Downgrade to Hold from Buy

$5.34

-4.98%

Canaccord Genuity downgrades Elders to a Hold rating from Buy and lowers its target price to $5.34 from $8.64 following a disappointing first-half result.

While group gross profit of $397m beat estimates by 7%, operating costs surged 25% on the prior corresponding period to -$276m.

The significant cost escalation is primarily attributed to the ongoing information technology system modernisation program, entirely overshadowing improved cash conversion and an initial five-month contribution from the Delta Agribusiness acquisition.

Sudden trajectory changes in operating expenses reduce forecasting confidence, prompting the broker to lower earnings per share estimates by -11% to -16% over the next three years.

The revised valuation reflects a lower 8.0x enterprise value to earnings multiple to account for reduced near-term predictability.