Macquarie lifts forecasts for the Australian dollar and, whilst in isolation this is negative for reported earnings, a stronger currency is usually correlated positively with higher global fertiliser prices.
This is also then supportive of the Incitec Pivot share price, which is currently lagging global peers. Macquarie retains an Outperform rating and reduces the target to $2.60 from $2.80.
Sector: Materials.
Target price is $2.60.Current Price is $1.89. Difference: $0.71 – (brackets indicate current price is over target). If IPL meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges – negative figures indicate an expected loss).
