LND - BrasilAgro Faces A Challenging H2 2024 And Is Not An Opportunity Yet
2024-04-05 02:34:29 ET
Summary
- BrasilAgro's stock price remains unchanged since January, and with agricultural commodity markets declining, it is not currently an attractive investment opportunity.
- The company experienced seasonal losses and an increase in debt during the planting season, but expects to recoup losses in the second half of the fiscal year.
- Indications suggest that the second half of 2024 will not be a great period for BrasilAgro, with decreased corn planting, dry weather conditions, and decreasing agricultural commodity prices.
BrasilAgro ( LND ) is a farmer and land developer from Brazil.
I have covered the company since December 2021 . My latest article, from January 2024 , maintained the thesis that the company trades for an elevated price when comparing its market cap with its cycle-average profitability. Further, given the recent bullish commodity market and the fact that the company leverages those markets in many ways (production, land prices, receivable fair value variation), investing today is risky....
BrasilAgro Faces A Challenging H2 2024 And Is Not An Opportunity Yet