Incitec Pivot explosives unit spin-off may offer upside value - Citi

Dyno Nobel

12/07/2023 22:47

** Analysts at Citi say the spin-off of explosives
manufacturing business of Incitec Pivot  IPL.AX  may have
incremental upside value for the co 
    ** Brokerage rates IPL shares "Neutral", sets price target
at A$3.0
    ** IPL, which also has a fertilizer business, said in May
last year it would spin off the explosives unit, Dyno Nobel, and
list it as a separate entity
    ** Co also confirmed on Wednesday it has received several
offers for a potential acquisition of its fertiliser business
    ** However, Citi thinks that a softer pricing environment
poses a key risk to the spin-off of Dyno Nobel
    ** Five of 10 analysts rate the stock "buy" or higher, and
the rest "hold"; their median PT is A$3.35 - Refinitiv data
    ** IPL shares down 22.3% YTD, as of last close 
   

 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))