Nufarm Ltd (NUF)
Good Morning, Enjoying all your info. There is a fair amount of variation in views on Nufarm, what are your thoughts? Thanks Hamilton
The Latest Q&A
Answer
Hi Hamilton,
NUF saw a number rating changes this month, all to the upside to a greater or lesser degree, after the company reported a FY25 loss of 0.116 per share, compared with 0.063 a year earlier. Group earnings came in line with consensus but were accompanied by “strong” FY26 guidance.
- NUF now has 4 Holds, 1 Buy and 1 Strong Buy across the few analysts that now cover the beaten-up stock.
Today investors see NUF as a higher-risk, lower-visibility company: the once-promising “seed tech + crop protection” story now looks muddled by execution issues, weak macro conditions, high leverage, and strategic uncertainty.
However, NUFs encouraging outlook and pathway to growth were the drivers of the share price recovery, albeit from a very low base. They are upbeat on being able to deliver on earnings growth for Hybrid seeds while delivering ~$30mn of improvements across emerging platforms. Also, a margin beat of 8.8% compared to 8.5% consensus helped solidify the result.
- The big variance in views highlights the uncertainties in a business like this, something that has been very obvious over time. We still have NUF in the too hard basket.
