In recent financial news, Australia’s Elders suffered a significant share drop of nearly 7%, valued at A$7.4, becoming a front-runner amongst the top losers on ASX 200.

This drop is primarily attributed to the ‘sell’ rating and A$6.85 price target initiated by Citi.

According to Citi, Elders presents as high-quality agricultural play, boasting of a solid track record of backward integration and sustained growth throughout the market cycle.

However, Citi foresees looming potential headwinds like unfavorable weather conditions, a drop in commodity prices, and a slow but steady increase in livestock exports.

The banking conglomerate also signals a sharp reduction in commodity prices as a key industry concern.

Furthermore, Citi predicts a considerable decline in Elders' core net profit by roughly 32% in FY 23 and nearly a further 5% in FY24.

Out of ten analysts, four have rated Elders as ‘buy’ or higher, while six advise ‘hold’, with their median price target set at A$8.57 - using Refinitiv data for reference.

Elders is a high-quality agricultural company with a focus on backward integration and sustained growth.