The main positive in the December quarter was record revenue of $119m, 14% above UBS estimates. Pricing was higher than anticipated. The main negative is the plant is still running at 75% capacity.
The broker makes few changes to forecasts, with better pricing offset by lower volumes. Positive momentum appears priced in and a Neutral rating is retained. Target is $4.30.
Sector: Materials.
Target price is $4.30.Current Price is $4.78. Difference: ($0.48) – (brackets indicate current price is over target). If LYC meets the UBS target it will return approximately -11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
