Bell Potter says this ASX 200 stock is a buy

Now could be the time to buy the ASX 200 stock in this article.

That's because the team at Bell Potter has just reaffirmed its buy rating on the stock.

Which ASX 200 stock?

The stock that is getting attention from Bell Potter is agricultural chemicals company Nufarm Ltd (ASX: NUF).

Bell Potter points out that recent peer reporting highlights continued margin recovery and trade flows suggesting a solid level of inventory rebuild ahead of major selling windows. It said: 

Key highlights from reporting season include: (1) Average reported selling prices were down -2% YoY and volumes were down -2% YoY; and (2) Gross margins (where reported) were up +180bp YoY. Like recent quarters, peer results continue to imply FY26e is a year of margin recover (as lower inventory moves through COGS) more so than top line growth.

Sector trade flows demonstrated -were down -3% YoY in volume terms and were down -18% YoY in value terms in 3Q26. The YoY change in sell through was stronger than the refill in value terms, implying formulators have not restocked with expensive stock, noting the volatility in China actives in the quarter

It also highlights that omega-3 oil pricing indicators have been firm. The broker adds:

Pricing indicators for omega-3 oil have remained firm and at levels consistent with previous peak pricing levels. South American fishoil prices are up +70-180% from Mar'26 levels, with bulk fishoil (the product most comparable to NUF Omega-3 products) last trading at US$4,650-8,250/t.

Time to buy

According to the note, Bell Potter has retained its buy rating on the ASX 200 stock with an improved price target of $3.75 (from $3.60).

Based on its current share price of $3.29, this implies potential upside of 14% for investors over the next 12 months. A 1% dividend yield is also expected over the period.

Commenting on its buy recommendation, Bell Potter said:

Our Buy rating is unchanged. Trading trends continue to infer FY26e is a year where improved gross margin (on lower COGS) and cost out are the main driver of profit growth. The[re] is the potential for surprise is omega-3, where Peruvian fishoil stock is in short supply and pricing indicators are reaching levels consistent with previous peaks.

There are modest EBITDA changes (<-1%) largely reflecting FX mark-to market. Our target price lifts to $3.75ps (prev. $3.60ps) on model roll forward.

The post Bell Potter says this ASX 200 stock is a buy appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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