Incitec Pivot’s December quarter realised prices compared favourably with September-November market prices, according to Credit Suisse. There is a one month lag in realised pricing. Apart from that all plants are considered to be operating in-line with expectations.
The analyst notes that while the purchase price for Titanobel appears reasonable, it is immaterial in the scheme of things. It’s believed upside may derive from growth in the electronic detonator market, which the company has the technology to supply.
The target price rises to $3.58 from $3.14, while the Neutral rating is unchanged.
Target price is $3.58.Current Price is $3.44. Difference: $0.14 – (brackets indicate current price is over target). If IPL meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).