Shares in crop protection company Nufarm Limited (ASX: NUF) were down 1.3% to $8.58 at the time of writing off the back of a 12-month period of declines, with the share price dropping 15.8% from its 52-week high of $10.20.
Private wealth manager Ord Minnett have upgraded Nufarm Limited from a hold to a buy recommendation noting that Nufarm has enjoyed strong-sales momentum in core geographies despite "little or no market growth" recently.
Ord Minnett has raised its price target on Nufarm from $9.00 to $10.50, with "increased valuation support" behind the upgrade in rating.
Nufarm posted half-year results to January 31, 2017 late last week, with underlying NPAT dropping 46% from the previous corresponding period and underlying EBIT also down 12% – results Ord Minnett pegged to weakness in its Latin America market and downtime at the Laverton plant.
Nufarm are expecting a turnaround for the second-half with EBIT growth guidance of between 5% and 10% and a product portfolio diversification strategy tipped to improve margins and lead to new product launches.
Investors who have been keen on Nufarm should head to the starting blocks sometime soon.
