Recent rainfall along most parts of the east coast has helped to improve agricultural conditions after years of drought, while flooding has been confined to coastal regions and not the main grain production areas of NSW.
As a result, UBS believes Incitec Pivot will be supported by the strengthening outlook for fertiliser prices internationally as well as the conditions for its domestic distribution business.
Buy rating retained. Target is $2.85.
Sector: Materials.
Target price is $2.85.Current Price is $2.88. Difference: ($0.03) – (brackets indicate current price is over target). If IPL meets the UBS target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
