Brokerage firm Jefferies predicts an earnings headwind for Nufarm, associating the decline to challenging market conditions faced by the seed technology company.

Jefferies has adjusted its price target for the company to A$5.30, down from A$6.20, and maintains a ‘hold’ rating.

The brokerage firm acknowledges that the volatile conditions of the agricultural input markets will persist to affect Nufarm’s profitability.

It also lowered its estimates for Nufarm’s FY24 and FY25 EBITDA by 2.9% and 1.4%, correspondingly.

Of the 11 analysts covering the stock, six rate it as ‘buy’ or higher and five hold a ‘hold’ view; their median price target is A$6.15.

Reportedly, the company’s stock is down by 23% YTD through the last close.

Nufarm (ASX:NUF) is an agricultural firm globally known for its innovation in crop protection and seed technologies.