Credit Suisse found little clarity in the June quarter production result but commentary appears to suggest some of the worst may be behind the business.
Zircon sales volumes was slightly ahead of expectations. The de-merger appears still targeted for the current half-year.
Upside potential has been reduced, as the stock heads towards the broker’s unchanged target of $10.
Outperform retained, as the balance sheet remains robust and the de-merger could be a catalyst.
Target price is $10.00.Current Price is $9.37. Difference: $0.63 – (brackets indicate current price is over target). If ILU meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
This excerpt is taken from The Australian Broker Call. Copyright FN Arena, visit www.fnarena.com for a free trial. http://www.fnarena.com/ts.cfm?R=EQUITYCAFE