Citi hikes FY24 forecasts for Australia's Incitec Pivot on higher pricing

Dyno Nobel

09/11/2023 23:47

** Citi has raised its FY24 earnings forecasts for
Australia's top fertiliser maker Incitec Pivot  IPL.AX  on the
back of higher assumed ammonia pricing given recent rebound 
    ** The broker says ammonia prices have risen from their
August lows of $295/ metric ton to now $625/ton 
    ** Citi upgrades its FY24 earnings before interest and tax
by 13% to A$759.8 million ($483.00 million) driven by
discontinued ops of its ammonia facility in Louisana, United
States
    ** Analysts at Citi, however, estimate FY23 underlying EBIT
of A$839 mln vs Visible Alpha Consensus of A$864 mln 
    ** Citi keeps the co's price target at A$2.90; upgrades to
"Neutral" rating from "Sell"
    ** 4 of 10 analysts rate the stock "Buy" or higher, five
"Hold" and one "Sell" or lower; their median PT is A$3.2 – LSEG
data
    ** Stock down 23.4% this year as of last close

($1 = 1.5706 Australian dollars)


 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))