If you are wanting a combination of major upside potential and an above-average dividend yield, then read on!
That's because the team at Bell Potter is expecting both from the ASX 200 share in this article.
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Which ASX 200 share?
The share that Bell Potter is bullish on is agribusiness company Elders Ltd (ASX: ELD).
It notes that the company released its full year results this week and delivered a set of numbers that were largely in line with expectations. The broker said:
Operating revenue of $3,201m was up +2% YOY (vs. BPe $3,273m). EBIT of $143.5m was up +12% YOY (vs. BPe of $144.6m and guidance of $142-146m). Underlying NPAT of $86.0m was up +34% YOY (and BPe of $80.5m).
A lease adjusted operating cashflow of $57.3m compares to an inflow of $31.6m in FY24 (and BPe of $48.8m). Net debt (exclusive of leases) exited the period at $278.6m and compares to FY25 of $436.8m (and BPe of $320.2m). Acquisition cash spend totalled $45.2m (with $33.7m invested in new acquisitions in the period) and investment in SYSMOD was $16.5m. Post balance date ELD has settled the Delta acquisition, which has lifted core debt post balance date to $161.9m or 1.0x EBITDA (vs a covenant of 2.5x).
Bell Potter was also pleased with management's outlook commentary, noting that another year of growth is expected for the ASX 200 share. It adds:
Key outlook comments: FY26 is forecast to be a year of further growth, driven by the consolidation of Delta, strong price support in livestock agency, full year contribution from real estate acquisitions, uptake of ELD finance products and containment of the cost base below inflation. YTD ELD baseline business is up +30% YOY.
Big potential returns
In response to the results, Bell Potter has retained its buy rating and $9.45 price target on Elders' shares.
Based on its current share price of $7.41, this implies potential upside of 27% for investors over the next 12 months.
And with the broker forecasting a fully franked dividend of 43 cents per share in FY 2026, this would mean a 5.8% dividend yield, which boosts the total potential return beyond 32%.
Overall, Bell Potter believes that this ASX 200 share is too cheap based on its growth outlook. It concludes:
We see encouraging signs for FY26e, with livestock turnoff values up ~35% YOY through 1Q26TD, stable to rising crop protection active ingredient values and modestly higher fertiliser price indicators. A more normal selling pattern in FY26e, delivery on SYSMOD and backward integration initiatives, sector activity tailwinds and consolidation of Delta are expected to drive high double-digit EPS growth in FY26-27e. This view does not look reflected in the current share price, with ELD trading at 11.4x FY26e EPS.
