Credit Suisse has attributed Incitec Pivot’s notable full-year underlying earnings beat to oversight of the impact of fertiliser pricing from consensus forecasts, with the company reporting $566m compared to a forecast $502m.
According to the broker, expect fertiliser pricing to stay above trend in the first half of FY22, while upside in the explosives segment is likely given full utilisation of Moranbah.
The Neutral rating is retained and the target price increases to $3.14 from $3.01.
Target price is $3.14.Current Price is $3.24. Difference: ($0.10) – (brackets indicate current price is over target). If IPL meets the Credit Suisse target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).