Morgans adds Elders to 'best ideas' list
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The news: Morgans has added agriculture and real estate group Elders to its 'best ideas' list for July, due to a 'more positive' outlook for FY25.
The numbers: Morgans has a price target of $9.60 on Elders, which was up 0.4% to $8.14 by 11:00am. The company's share price has gained more than 20% over the last 12 months.
The context: Morgans analysts said that the outlook for the agribusiness in FY25 was looking 'more positive', with many growth projects in place to drive strong earnings growth over the next few years.
They said Elders was a 'key pick' that traded on undemanding multiples, and this offered an attractive dividend yield.
In May, Elders reported a drop in first-half profit and lowered its interim dividend, as challenging seasonal conditions, cautious client sentiment, softening crop input prices and lower livestock prices weighed on the agribusiness' earnings.
The source: Morgans research
