Despite a number of North American plant outages, Morgans estimates the rest of the business will offset these impacts. The fertiliser business is considered to be benefiting from favourable seasonal conditions and rising prices.
The analyst increases profit (NPAT) estimates for FY21-23 by 34.6%, 25.5% and 24.6%, respectively.
With rising earnings momentum from strengthening fertiliser prices, the company is now firmly in the upgrade cycle, explains Morgans.
Add rating and price target increased to $3.25 from $2.50.
Target price is $3.25.Current Price is $2.57. Difference: $0.68 – (brackets indicate current price is over target). If IPL meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).