Investments banking firm, Citi, has significantly reduced the price target for Australian agricultural business, Elders (ASX:ELD), from A$6.85 to A$6.00 based on a weaker outlook for fiscal year 2024, but it keeps a ‘sell’ rating for the stock.

Elders had announced expectations for its fiscal year 2023 underlying earnings before interest and tax at A$165 million and A$175 million.

This indicates a downgrade from its earlier projection of A$180 million and A$200 million, which was impacted by less-than-expected sales of rural products, among other factors.

Consequently, Citi reduced its fiscal year 2023 underlying EBIT for Elders to A$166 million, reflecting a cautious near-term forecast across the agribusiness sector.

Analysts at Citi noted that while the downgrade in Elders' earnings wasn’t surprising, they were taken aback by its magnitude.

With downside risks looming for the agribusiness industry, the total market that Elders could possibly address is anticipated to decline in the near term.

Out of eleven analysts, four rate Elders' stock as ‘buy’ or higher, six as ‘hold’, and one as ‘sell’ or lower.

The median price target is A$8.39, as per data from Refinitiv.

Elders' stock has suffered a fall of roughly 37.4% this year, up to the most recent close.

Elders (ASX:ELD) is a renowned Australian agricultural business, providing a broad range of services and products related to farming and rural supplies.