ILU - UBS rates the stock as Buy
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Iluka has completed the acquisition of Sierra Rutile. When the deal was first announced, the broker estimated earnings accretion of 17%. On the basis of more recent Iluka estimations, the broker is now suggesting more like 70-80% accretion.
Sierra adds a scalable, long-life asset with options to improve performance, the broker believes. The broker has not yet incorporated the acquisition into valuation and retains Buy and a $7.50 target.
Target price is $7.50.Current Price is $6.95. Difference: $0.55 - (brackets indicate current price is over target). If ILU meets the UBS target it will return approximately 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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