Upside for Incitec Pivot relies on fertiliser unit sale, Jefferies says

Dyno Nobel

16/05/2024 20:40

** Jefferies analysts say half-year results for Incitec
Pivot  IPL.AX  were well received, but any upside depends on
company's disposal of its fertiliser business
    ** Fertilisers and explosives maker on Wednesday posted HY
adj net profit after tax of A$164 mln ($109.54 mln), ahead of
RBC's est of A$142 mln
    ** Company also announced talks to sell its fertiliser unit
to Indonesia's PT Pupuk Kalimantan Timur  PUPUK.UL 
    ** Incitec's share price is already discounting the likely
value release from asset sales and capital redeployment -
Jefferies
    ** "There may be further upside potential as IPL's
transformation program supports higher underlying returns
overtime. Everything, however, remains tied to the successful
execution of the fertiliser disposal" - brokerage
    ** 5 of 12 analysts rate the stock "buy" or higher and 7
"hold"; median PT A$3.09 – LSEG
    ** Stock up 21.2% YTD, based on last close

 ($1 = 1.4972 Australian dollars)

 (Reporting by Aaditya Govind Rao in Bengaluru)
 ((aaditya.govindrao@thomsonreuters.com))