Credit Suisse reports that nitrogen prices have reached a level high enough to lure high-cost producers back into the market, which should contain further upside, with limited effect on Incitec Pivot.
The broker expects prices will continue to be strong in the December and March quarters before sliding in the second half of 2022.
Neutral rating and $3.14 target price retained for now.
On a blue-sky scenario (appreciation of the $A) could drive the target price to $3.77. On a grey sky (depreciation scenario), the target price is pegged at $2.51.
Sector: Materials.
Target price is $3.14.Current Price is $3.11. Difference: $0.03 – (brackets indicate current price is over target). If IPL meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
