In June, I looked at some of the stock exchange’s major agricultural stocks, some of which continue to rebound, including the two rural services heavyweights, Ruralco (RHL) and Elders (ELD). Let’s see how they’re now travelling.
Since that article, Ruralco and Elders have both moved higher – and while RHL appears to be fully valued, analysts see Elders as having significant scope to move higher.
Grain business Graincorp (GNC) is also seen as having strong upside, as is Australia’s largest cattle company Australian Agricultural Company (AAC). Farming real estate investment trust (REIT) Rural Funds Limited (RFF) also has analysts’ consensus target prices higher than its market price – but faces a messy situation of having to defend itself against short-seller Bonitas Research, which claims that the trust, which owns more than $900 million worth of agricultural assets, is worthless (RFF has taken Bonitas to court).