** Citi upgrades rating on Australian agribusiness Nufarm Ltd NUF.AX to 'Neutral' from 'Sell' to reflect better earnings growth outlook

** Citi also raises price target to A$2.55 from A$2.35

** Co on Wednesday reported better-than-expected FY25 earnings, strong FY26 outlook, and named Rico Christensen as its new CEO

** Citi says Christensen's appointment is likely to be well received by the market given his extensive experience across the agricultural industry

** "While balance sheet risk lingers, we are encouraged by more constructive growth trajectory and removal of the Seed Technologies overhang" - Citi

** Brokerage surprised by NUF's decision to hold onto seed technologies business instead of a sale or closure, but notes co's focus on reducing costs and capital requirements, particularly for omega-3

** Says there could be upside to omega-3 earnings expectations if uptick in fish oil price in November persists

** As of last close, stock down 33.1% YTD

(Reporting by Himanshi Akhand in Bengaluru)

((Himanshi.Akhand@thomsonreuters.com;))