Nufarm Ltd's stock price surged 5.50% during intraday trading on Thursday, marking a significant upward movement for the crop-chemicals supplier.

The rally follows a bullish analyst report from Jefferies, which upgraded Nufarm to "buy" from its previous rating. The firm highlighted a cyclical inflection point in the company's Crop Protection and Seeds businesses, alongside an improved cash flow outlook that provides a viable pathway to reducing debt. Jefferies also noted easing costs for the omega-3 business and a reduced capital profile, giving management more strategic options. The analyst added that risks around leverage have diminished, and regulatory environments in Europe and China are becoming more favorable. Jefferies raised its price target for Nufarm by 32% to A$3.50 per share.