Brokerage Citi reduces PT for Australia's Incitec Pivot

Dyno Nobel

12/09/2023 22:54

** Brokerage Citi reduces its earnings estimates for
agri-tech supplier Incitec Pivot  IPL.AX  as co announced lower
margins in its fertiliser distribution business and required
maintenance at its fertiliser plant
    ** Citi reduces price target to A$2.90 from A$3.00;
downgrades rating to 'sell' from 'neutral'
    ** Citi cautious on nitrogen pricing into CY24 and has
reduced FY23 and FY24 earnings estimates by 10% and 13%,
respectively
    ** Citi expects lower prices for diammonium phosphate and
ammonia
    ** IPL says earnings in the distribution business is
expected to be at the lower end of the usual range of A$40 mln
($25.70 mln) to A$60 mln
    ** IPL confirms that it is continuing to pursue a potential
sale of its fertilisers business
    ** IPL down 17.6% YTD, as of last close

($1 = 1.5562 Australian dollars)

 (Reporting by Adwitiya Srivastava in Bengaluru)
 ((Adwitiya.Srivastava@thomsonreuters.com;))