March quarter production was in line with expectations. Taking into account current price increases and supply disruptions as well as the uncertainty in the macro environment Credit Suisse lifts mineral sands price forecasts for 2022 and 2023, while maintaining a downward price trend from 2022.
Several catalysts are lining up for the second half with the next big decision being a mine at Balranald which could refresh the ageing operations.
The broker assesses the recent sell-off opens up some value and upgrades to Outperform from Neutral. Targets raised to $13.20 from $13.00.
Sector: Materials.
Target price is $13.20.Current Price is $10.57. Difference: $2.63 – (brackets indicate current price is over target). If ILU meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
