In-line with the expectations of UBS, management has announced the Waggaman ammonia plant was successfully re-started and has been operating at nameplate production since 1 June.
The broker estimates the current share price appears to imply a FY22 DAP price of US$370t versus spot of US$575t, and an Ammonia price of US$370t versus spot of US$585t. The analyst raises the target price to $2.91 from $2.88 and maintains the Buy rating.
Sector: Materials.
Target price is $2.91.Current Price is $2.57. Difference: $0.34 – (brackets indicate current price is over target). If IPL meets the UBS target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
