Morgan Stanley suspects inventory builds in the 3Q were at the heart of weaker sales across all products. While production was in line with the broker’s forecast, it fell short of the consensus estimate.
Pricing across zircon, rutile and synthetic rutile was weaker due to product mix, despite management previously flagging price stability.
Helping to alleviate some pressure on inventories, synthetic rutile production is due for a restart in January following outages, explain the analysts.
Equal-weight. Target is $8.20. Industry view: Attractive.
Sector: Materials.
Target price is $8.20.Current Price is $7.15. Difference: $1.05 – (brackets indicate current price is over target). If ILU meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
© 2023 Acquisdata Pty Ltd., source FN Arena
Source: marketscreener.com
