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Highlights

  • Elders stock rated Buy by Bell Potter with a 12-month price target of AUD 9.10, implying 48% upside.
  • Dividend yields forecast at 5.8% (FY25) and 7% (FY26), adding to the total potential return.
  • WILSONS maintains an Overweight (2) rating with 33.66% implied upside, supporting broader market optimism.

Shares of Elders Ltd (ASX:ELD) have recently attracted positive attention from analysts following a period of share price weakness linked to the announcement of its potential acquisition of Delta in late 2024. While the stock has since underperformed, falling roughly 15% in enterprise value, analysts now view this correction as a potential entry point for investors seeking exposure to Australia's agricultural sector.

Bell Potter, in its latest equity research, has reiterated a Buy rating on Elders and set a 12-month price target of AUD 9.10. With the stock last trading around AUD 6.15, this target implies an upside potential of 48%. Including forecast dividend yields of 5.8% in FY25 (partially franked) and 7% in FY26 (fully franked), the broker sees total return potential exceeding 50%.

The brokerage outlines three primary catalysts that could drive a re-rating in Elders’ share price:

  1. Growth in the core business,
  2. Leverage benefits from the Delta acquisition, and
  3. Upside from livestock markets.

Looking at the company’s earnings forecast, Bell Potter expects Elders’ base business to deliver AUD 155–160 million in EBIT for FY25, with room to expand to AUD 190–200 million by FY27. This improvement is anticipated to stem from strategic initiatives such as backward integration (unlocking AUD 15 million in margin benefits), progress on its SYSMOD program (AUD 11 million margin improvement), the full-year impact of first-half FY25 acquisitions (AUD 2 million in FY26), and the recovery from drought conditions in South Australia (AUD 12 million in margin recovery). Altogether, these factors could drive compound annual EPS growth of approximately 14% between FY24 and FY27, despite equity dilution from the acquisition.

Adding to the bullish sentiment, investment firm Wilsons also maintains a positive outlook on Elders. In a note dated 27 May 2025, analyst assigned an Overweight rating, projecting a 33.66% upside