Citi upgrades ILU to Buy from Neutral Thursday, November 28, 2013 - 10:57
November 28, 2013
Titanium oxide demand is expected to rise in 2014 after two years of destocking, but increased Chinese pigment production is expected to cap prices. The broker suggests this "arm wrestle" will mean Iluka will likely range-trade between $9-12.
On the basis of the recent share price correction, the broker nevertheless upgrades to Buy. Target rises to $10.70 from $10.50.
Target price is $10.70 Current Price is $8.72 Difference:$1.98 - (brackets indicate current price is over target). If ILU meets the Citi target it will return approximately 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in December.
Citi forecasts a full year FY13 dividend of 5.00 cents and EPS of 17.00 cents . At the last closing share price the estimated dividend yield is 0.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.29.
FN Arena
ILU Price at posting:
$8.86 Sentiment: LT Buy Disclosure: Held
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