The S&P/ASX All Ordinaries Index (ASX: XAO) is in the green on Tuesday, up 0.08% to 8,873.8 points.
Morgans has updated its ratings and 12-month price targets on three ASX agriculture shares following their FY25 reports.
Let's take a look.
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Nufarm Ltd (ASX: NUF)
Nufarm is an agricultural chemical and seed-technology company with clients all over the world.
The Nufarm share price is $2.39, down 2.85% today and down 34% in the year to date.
Morgans has a buy rating on Nufarm shares with a 12-month price target of $3.20 following the company's FY25 results.
The broker commented:
While NUF's FY25 result was weak, it was slightly above guidance.
A solid Crop Protection result was overshadowed by a poor Seed Technologies performance. Gearing was far too high at 2.7x, however it was better than feared. Outlook comments were upbeat.
In FY26, material earnings growth and a reduction in leverage ratios is expected. We have upgraded our forecasts. Now that there is certainty on Seed Technologies future, industry operating conditions have improved and there is a clear pathway to deleveraging the balance sheet, we upgrade NUF to a Buy recommendation and A$3.20 price target.
Elders Ltd (ASX: ELD)
Elders supplies all types of farming products, as well as advisory, financial, and real estate services.
The Elders share price is $7.28, up 0.14% on Tuesday and up 1% for 2025.
Recently, the broker retained its buy rating on Elders after the company released its FY25 results.
Morgans says there are many drivers in FY26 that should enable Elders to deliver strong growth.
The broker upgraded its price target on the ASX agriculture share from $8.50 to $8.65.
Morgans commented:
ELD's FY25 result was in line with its guidance. As was well guided too, the 2H25 was weak due to drought.
Outlook comments were optimistic, the 1Q26 is off to a strong start and FY26 should benefit from a positive rainfall outlook, higher selling prices, acquisitions and the transformation projects.
Graincorp Ltd (ASX: GNC)
Graincorp offers grain handling, storage and logistics services, as well as trading and marketing. It also processes oilseeds to produce vegetable oils and other food products.
The Graincorp share price is $8.09, up 0.4% today and up 9.6% in the year to date.
Morgans thinks this ASX agriculture share has been oversold following an 8.4% decline over the past month.
The broker maintained an accumulate rating on Graincorp shares with a new price target of $9.05 following the company's FY25 results.
Morgans said:
While it can be argued that the FY25 P&L result was lower quality due to one-offs, operating cashflow was materially stronger than expected, underpinning GNC's strong core cash position.
This allowed the company to reward shareholders with an attractive final dividend.
In line with the recent outlook commentary from its international peers, GNC said that the margin environment will likely remain subdued in FY26. Consensus estimates were therefore too high.
Importantly, payments to the insurer will no longer occur in big crop years, allowing GNC's strong fixed cost leverage to return when crop production issues around the world ultimately eventuate.
