Morgan Stanley lifted PT to $5.20, page-11

Firetrail posted about Nufarm on Livewire, they hold in their high conviction fund:

Why Nufarm (ASX:NUF) is a buy

Nufarm has been a key holding for the Absolute Return Fund over the last couple of years. Earnings have disappointed during this time due to severe droughts in Australia, and Europe, alongside a major flood-impacted season in North America in 2019. Looking forward, we expect a much better year for Nufarm in 2021 as the company benefits from an increase in planted acreage and better demand for crop protection products.

After three years of poor seasonal conditions, it appears 2021 may be a Goldilocks moment for farmers globally. Alongside better planting conditions for growers, we also expect supply tightness for key crop protection materials sourced from China to ease.

The price of key Chinese raw materials has been rising in recent years due to a forced government clampdown on suppliers with poor safety/environmental track records. This transition appears to be over, with new supply replacing what was lost in recent years taking the pressure off supply costs.

Source: Supplied.

Nufarm’s recent trading update pointed to a ~40% lift in group revenues over the four months to November. This was led by Europe and Australia. While it remains early in the year, the signs are encouraging. We expect earnings to follow the sales improvement, further underpinned by Nufarm’s $20-25m cost-out program, improving raw materials pricing, alongside operating leverage.