Analysts mixed over Australia's Nickel Industries; focus on Indonesian projects

Nickel Industries

31/10/2023 20:32

** Analysts at Citi upgrade their rating on Australia's
Nickel Industries  NIC.AX  to "buy" from "neutral", trim PT to
A$0.95 from A$1.00
    ** Brokerage says NIC margins are improving as costs decline
and ramp up of Indonesian projects like Oracle Nickel Project
(ONI) & Angel Nickel Project (ANI) rotary kiln electric furnaces
(RKEFs)
    ** "See announcing a larger dividend as key catalyst for
stock, giving investors conviction that there are no more 'big
deals' to come" - Citi
    ** Jefferies reiterate "hold" on NIC at price target of
A$0.80/share over expectation of deflated nickel market to weigh
on stock over medium-term
    ** Brokerage says co well-positioned to diversify across
Nickel Pig Iron (NPI), nickel sulfate, among others providing
access to EV battery supply chain 
    ** Brokerage sees NIC's EBITDA growth driven from
diversified nickel production growth; notes ongoing equity
dilution capped EPS growth
    ** Nickel producer posts quarterly EBITDA from operations of
$120.7 mln vs $55.5 mln
    ** Stock down 23.2 YTD, as of last close

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com;))