ELD General Discussion, page-521

From the 'lively' blog this morning, what Bell Potter says of ELD:

(as always, DYOR):

ANALYST OUTLOOK &STOCK PICKS JUNE 20244
AGRICULTURAL& FMCG
Jonathan SnapeIndustrials Analyst
Investments in the Agricultural & FMCGsector should be considered high riskand come with volatility from bothcommodity prices and seasonal factors.For this reason we tend not to so muchfocus on a directional share price movein the coming months but rather wherewe are seeing a value in the currentshare price relative to a stocks throughthe cycle earnings. As such the threestocks we identify should not so much beconsidered key picks on a directional 6monthly share price direction, but rathervaluation dislocations where we are see abuying opportunity.

Elders (ELD)ELD is a leading supplier of fertiliser,agricultural chemicals and animalhealth products to rural and regionalAustralia, with strong agencypositions in livestock, wool and realestate.We estimate ELD normalisedEBITDA range to $270-280m(recently upgraded from $246-251m)reflecting business investmentinitiatives (backward integration andsystem modernisation) and recentacquisitions.

While we expect FY24eto be a difficult year, we would seeYOY comparison becoming easier aswe move through 2H24 and see ELDas having high levels of operatingleverage to more normalised levelsof activity, particularly in livestockmarkets, where the discount ofcattle to meat it at one of its widesthistorical points.Buy, Price Target $9.30