We met the ELD CEO around 3 months ago and he was particularly optimistic about the business believing earnings could well be higher YoY which would be a positive surprise for the market – the stock reports in a fortnight’s time and is set to pay a 22c part franked dividend later this month. Clearly agricultural commodity prices have been high and farmers with money in their pockets is very supportive of Elders.
The risk/reward looks solid around current levels for a business that’s not fixated on interest rates.
- We like ELD with a 20% upside move looking achievable in a firm market.
MM is bullish ELD around $13.30
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