"Lots of cash, lots of options", Berenberg upgrades OCI to 'buy'

OCI

02/02/2024 10:28

** Berenberg upgrades agrochemicals producer OCI  OCI.AS  
to "buy" from "hold", saying it expects a positive financial
impact of the sale of IFCo
    ** OCI shares are up 4.11% at 10:24 GMT, paring earlier
gains of 5.4% 
    ** The shares have been "stubbornly cheap" due to worries
over the divestment of Iowa Fertilizer Company (IFCo) and little
clarity regarding RemainCo and capital distribution, the broker
says
    ** But recent transactions show that regulators are likely
to approve IFCo purchase, assuaging worries over divestment cash
not materialising
    ** The Amsterdam-listed company's strategic review is to
unlock $6.1 bln in divestment proceeds
    ** Berenberg expects the company to return around $3.5bn to
shareholders, invest $800m in the construction of a second line
at its blue ammonia plant in Texas and pay down $800mn of debt
    ** The broker raises TP by over 43% to 38 euros
    ** Out of 12 analysts that cover OCI, eight rate the stock
"strong buy" or "buy", and ​four rate "hold" 
    

 (Reporting by Stéphanie Hamel)
 ((stephanie.hamel@thomsonreuters.com))