Re ELD's trading update, this is from 'The Australian'...

Re ELD's trading update, this is from 'The Australian' online:

..."is largely backward looking, the future should be more normal", according to Shaw and Partners' analysts.

Elders on Monday told investors underlying earnings before interest and taxes is expected to come in between $120m and $140m for the full year ending September 30. The group's FY23 underlying EBIT was $170.8m, a drop on the FY22 result.

"We have reflected the challenging 1H24 conditions in our revised forecasts and continue to assume 2H24 onwards will be more normal," the note says. The broker cut its FY24 earnings forecast down by 22.5 per cent, but expects only a 3.5 per cent decline for FY25 and FY26. The target price was cut from $10 to $9 due to higher debt, but the buy rating stays.

"ELD delivered impressive results over the 9 years to FY23 in varied conditions in the Australian agriculture sector… The more positive ABARES outlook released in March 2024 and higher livestock prices suggest more normal conditions for Australian agriculture in calendar 2024."