The Elders Ltd (ASX: ELD) share price has had a rough month on the markets, but the stock's future appears far brighter.
That is according to one top broker. Goldman Sachs remains bullish on the Elders share price, holding its 'conviction buy' rating steady and tipping an 80% upside on its current levels, as my Fool colleague James reports.
The S&P/ASX 200 Index (ASX: XJO) agribusiness company's stock is currently swapping hands for $11.71 a piece. That's 9.7% lower than it was this time last month.
Let's take a look at what's got Goldman Sachs bullish on the 183-year-old Australian business.
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Goldman Sachs tips Elders share price to reach $21
The Elders share price could soon reach a whopping $21, according to the broker. Goldman Sachs believes the ASX has been too harsh on the stock.
It commented on the recent selloff of Elders' shares, saying:
We believe the market is applying a higher weight to the potential of a cyclical downturn in seasonal conditions over the long-term structural growth opportunities still in front of the company.
Elders revealed a combination of market and seasonal factors, acquisition, and organic growth saw its activity increase over the first half of financial year 2022.
Indeed, it posted a 38% jump in revenue and an 80% lift in earnings before interest and tax (EBIT) over the six months ended 31 March.
That led the company to upgrade its guidance. It's forecasting its full-year EBIT to be 30% to 40% above that of financial year 2021.
And it's not just the company's potential growth that's exciting the team at Goldman Sachs.
The broker tipped Elders to up its dividends to 50 cents for financial year 2022 and 53 cents in financial year 2023, as The Motley Fool Australia reported last month.
For comparison, the company paid out 42 cents in dividends in financial year 2021.
