The Macquarie commodities teams has revisited the demand for base metals. In particular, there’s considered to be positive signs for global copper demand.
The demand momentum for Nickel in China has slowed recently though the rest of the world (helped by Indonesian stainless) has picked up the baton, explains the broker.
Macquarie prefers Nickel Mines, IGO Ltd and Western Areas for nickel production. The Lighten rating and $8.50 target are retained.
Sector: Materials.
Target price is $8.50.Current Price is $7.67. Difference: $0.83 – (brackets indicate current price is over target). If IGO meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
