The team at Bell Potter has identified one ASX 200 stock that it believes could rise very strongly from current levels.
Let's find out which stock it is recommending to clients this week.
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Which ASX 200 stock?
The stock that Bell Potter thinks is dirt cheap is Nufarm Ltd (ASX: NUF).
It is a leading supplier of off-patent agricultural chemicals, seeds, and seed treatments globally. Bell Potter notes that it has a marketing presence in over 30 countries and sales in over 100 countries.
The broker believes that recent datapoints are favourable ahead of peak sales windows. It said:
Bulk feed grade oil ex-Peru has climbed US$1,000/t in recent weeks. Pricing for Peruvian feed grade oil is now at US$4,400-4,500/t well above the US$2,600/t level from a year ago. Importantly, these moves have occurred prior to the announcement of the Peruvian anchovy catch quote of 1.91mt for the upcoming Northeast season, which is down -36% YoY and to a 3-year low (from 1.91mt to 3.0mt in 2025).
At the very least we would see the rising price indicators for omega-3 oils and weaker supply providing a supportive backdrop for NUF to sell through existing inventory (US$90m) and more likely to drive an improved operating performance.
In addition, crop monitoring reports have been positive, which bodes well for demand for Nufarm's products. It adds:
Europe: The most recent JRC Mars crop monitoring report highlighted that winter crops are restarting vegetative growth under favourable conditions, supported by adequate soil moisture and mild late-winter temperatures in many regions. COCEREAL forecasts point to a +0.2% YoY uplift in acreage, with a rotation towards oilseeds (+3.1% YoY) from grain (-0.5% YoY).
North America: The planting intentions report highlighted a modest YoY decline in CY26 (down -0.7% YoY) with a rotation from wheat and corn to Soybean. Canadian plantings were up modestly (up +0.4% YoY), with a rotation to barley and canola.
Big potential returns
According to the note, the broker has retained its buy rating and $3.60 price target on the ASX 200 stock.
Based on its current share price of $2.23, this implies potential upside of over 60% for investors over the next 12 months.
Commenting on its buy recommendation, Bell Potter said:
We are now beginning to enter the most material selling windows for NUF and the majority of markets look supportive of reasonable demand levels of crop protection products. In addition, upward movements in active ingredients (glyphosate +14% in recent weeks) and omega-3 indicators all look to support a reasonable pricing environment.
The potential for a faster selling window and restart of omega-3 oil sales have the scope to assist the deleveraging of the NUF balance sheet which would likely be a positive share price catalyst.
