for those interested.... Upgrades to pricing for ILU a slight...

for those interested.... Upgrades to pricing for ILU a slight positive for SFX.

UBS rates ILU as Upgrade to Neutral from Sell (3) -

UBS raises its mineral sands price forecasts across 2024-26 by 6-12%, and also upgrades Iluka Resources' production capacity across the same period, resulting in EPS upgrades of 7%, 29% and 69%, respectively.

The broker's target rises by 12% to $7.50 and the rating is upgraded to Neutral from Sell.

By contrast, UBS lowers its neodymium and praseodymium (NdPr) price estimates by -18-30% across the curve and decreases the long-term forecast price to US$75/kg from US$95/kg.

The falling NdPr price has UBS questioning the value to Iluka of the company's Eneabba rare earth refinery project.

Target price is $7.50 Current Price is $7.12 Difference: $0.38
If ILU meets the UBS target it will return approximately 5%(excluding dividends, fees and charges).

Current consensus price target is $7.78, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

UBS forecasts a full year FY24 EPS of 47.00 cents. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.15. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 43.8, implying annual growth of -45.5%. Current consensus DPS estimate is 8.6, implying a prospective dividend yield of 1.2%. Current consensus EPS estimate suggests the PER is 16.4.

Forecast for FY25:

UBS forecasts a full year FY25 EPS of 87.00 cents. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.18. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 64.1, implying annual growth of 46.3%. Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 11.2.