Morningstar, Jefferies expect share price discounts for Australia's Incitec Pivot

Dyno Nobel

13/11/2023 19:02

** Analysts at Morningstar and Jefferies remain cautious of
fertiliser and explosives company Incitec Pivot's  IPL.AX  sale
of assets in order to change their PTs on the stock
    ** Morningstar keeps its fair value estimate unchanged at
A$3.50/shr, while Jefferies retains "hold" rating and PT of
A$3.00/shr
    ** Morningstar says the increase in capital returns by IPL
to A$1.4 bln ($893.34 bln) should be favourably completed while
the share price remains below the fair value estimate
    ** Jefferies assumes share price of A$2.90 for the A$1.4 bln
buyback to take place, especially with the sale of IPL's assets
in the picture
    ** Both brokerages expect share price discounts for the
company
    ** Four of 10 analysts rate stock "buy" or higher, 6 "hold";
median PT is A$3.20 - LSEG data
    ** Stock down 21.8% YTD, as of last close
    
    
($1 = 1.5672 Australian dollars)

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((Shivangi.Lahiri@thomsonreuters.com;))