Financial analysts at Citi recently commenced their analysis of the Australian agribusiness, Elders.

The firm has been given a ‘sell’ rating with a price target of A$6.85.

Elders recently concluded its trading at a solid A$7.54.

The brokerage highlighted Elders as a high-quality agricultural player with a commendable track record, thanks to its consistent growth through the cycle and successful backward integration.

However, Citi also pointed out potential challenges such as adverse weather conditions, declining commodity prices, and sluggish growth in livestock exports.

The firm stated that the sharp drop in commodity prices is one of the industry’s significant concerns.

Citi anticipates Elders' core net profit for FY23 to amount to A$110.1 million and A$104.9 million for FY24, experiencing a decline from A$162.9 million in FY22.

According to Refinitiv data, four out of 10 analysts rate Elders ‘buy’ or higher, while six maintain a ‘hold’ stance, with a median price target of A$8.57.

Elders is an Australian agribusiness firm involved in livestock and wool trading, production, grain trading, and rural services.