Nufarm unfazed on refinancing

Date:10-03-2011

Nufarm will "comfortably" get its refinancing in place by December, the crop protection group says, and foreshadows an aggressive push into the $1.4 billion azoxystrobin fungicide market as part of its strategy to diversify into a broader range of agricultural chemicals.

In a briefing with analysts yesterday, Nufarm managing director Doug Rathbone said $600 million in fresh facilities would be "comfortably in place in time", The Australian Financial Review reports.

His comments came a day after Nufarm handed down an improved operating performance after opting to sell higher-margin products rather than higher-volume, low-margin sales, particularly for key weedkiller compound glyphosate.

The result, a 68 per cent increase in underlying profit, triggered a mixed reaction from analysts.

Wilson HTM analyst James Ferrier upgraded his price target from $5.20 a share to $5.40 after increasing his fiscal 2012 profit forecast by 9 per cent to $127 million.

Goldman Sachs maintained its "hold" rating and said operating conditions were improving, and Deutsche Bank downgraded its rating to "sell" because the stock was trading at a 15 per cent premium to its $3.75 valuation.