Elders Field Days Highlights

Analysts at Deutsche Bank maintain their "Buy" rating on Elders Limited (ASX: ELD) after Elders hosted a 2-day strategy update and site visit. The price target is set to $0.25.

Our favorable view of Elders remains based on the margin potential in the Rural Services division. Elders has outlined 5 key factors necessary to achieve this outcome: improved go-to-market strategy, greater supply chain efficiency, operational excellence, cost control, and improved staff efficiency, the analysts say.

Management reiterated its focus on improving margins in the Rural Services division and outlined 5 key factors necessary to achieve this outcome. We continue to forecast an improvement in the Rural Services EBIT margin from 2.3% in FY08 to 4.1% in FY12 as a result of these initiatives., they further added.
In Today’s session, ELD closed at $0.155.