UBS thinks IGO has made a “shrewd” acquisition of an interest in Tianqi’s lithium assets.
The broker is impressed with the tier-1 asset Greenbushes mine and believes that the opportunity to buy tier 1 assets is rare in any commodity.
Buy retained. Target rises to $8 from $7.50.
Target price is $8.00.Current Price is $6.52. Difference: $1.48 – (brackets indicate current price is over target). If IGO meets the UBS target it will return approximately 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).