07/09/2023 09:09

Incitec Pivot Ltd (IPL) $3.00

Diversified international chemicals manufacturer IPL received over 57% of its revenue from the US in 2022, its fairly cheap after struggling through 2023 with the stock now trading at a FY24 P/E of ~12x which is a 15% discount to the 10yr average.

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13/07/2023 09:21

Incitec Pivot (IPL) $2.92

Incitec Pivot (IPL) +5.42% after letting the market know it had received inbound interest for its fertilizer business. The company is in the process of splitting into explosives (Dyno Nobel) and Incitec Pivot Fertilizers &/or selling off its fertilizer arm.

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08/06/2023 09:20

Incitec Pivot (IPL) $2.81

Fertilizer and explosives business IPL has fallen over -20% in 2023, and its recent 1H23 earnings miss of around 7-10% continues to weigh on the stock i.e. the weak keeps getting weaker. The stock is now relatively cheap trading on an 8x PE for 2023 but the downside momentum suggests a test of $2.50 is a strong possibility as the stock plumbs fresh multi-month lows. On Tuesday IPL was hit with the fresh news that Jeanne Johns will be stepping down from her role as CEO at the end of this month. The business could still add value by demerging its explosives and fertilizer operations but while we believe this corporate move will at least raise its head again it may not be until 2024. • We see no reason to catch this falling knife in today’s market environment in which investors aren’t chasing turnaround stories.

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02/06/2022 09:18

Incitec Pivot Ltd (IPL) $3.58

IPL has been under pressure since the company announced plans to split its fertiliser and explosives businesses, news which managed to overshadow a record first-half earnings report. In a nutshell, IPL is looking to list the two divisions individually on the ASX:

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29/04/2022 09:12

Incitec Pivot Ltd (IPL) $3.87

Fertiliser business IPL is also in the right market segment in our opinion as food prices soar, again the $7.5bn business is fairly cheap trading on an Est 7.3x valuation for 2022 while it also generates enough money to pay a 3.5% yield over the coming 12-months. As global miners such as BHP Group (BHP) look to restructure their businesses away from fossil fuels we could easily see IPL residing on someone’s menu.

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15/03/2022 09:08

Incitec Pivot Ltd (IPL) $3.80

Industrial chemicals and fertiliser manufacturer IPL has rallied steadily over the last 2-years however even though we like the market segment as food prices surge higher MM is not keen on chasing the stock near $4. We are neutral around the current $3.80 area but if we see another 75-80c dip in the share price the risk / reward will become far more attractive – remember MM expects 2022 to deliver plenty more volatility hence never say never.

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17/01/2022 09:28

Chapter 3 – Increase flexibility & quality

We have already touched on increasing defensives and cash through 2022 but what stocks to hold in respective sectors and the market as we alluded to earlier ultimately dictates portfolio performance and as we expect shorter and sharper cycles opportunities to buy & sell are likely to present themselves at regular times – not being active enough on the sell side was probably our largest portfolio detractor last year.

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15/11/2021 17:01

Incitec Pivot (IPL) $3.24

IPL +3.85%: Shares in the fertilizer & explosives business shot out of the range today, trading to 24 month highs early before giving up most of the gains. The FY21 result was out this morning which saw adjusted EBIT rise 51% to $566m with market leading explosives tech and surging fertilizer prices contributing to a strong 2nd half and a beat at the result. They...

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04/11/2021 09:19

Incitec Pivot (IPL) $3.12

Of the 3 stocks looked at today chemical and fertiliser company IPL is discussed the most but as the global demand for food grows sending prices skyrocketing in the process the backdrop for businesses like IPL is solid. The stocks already run reasonably hard through 2021 but we can comfortably see another 20% upside if stocks enjoy another strong Christmas Rally.

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30/09/2021 09:40

Incitec Pivot (IPL) $2.92

Fertiliser and chemical producer IPL has been steadily advancing since its panic COVID low, the company delivered  a strong 2nd half performance across most areas of the business which has helped the stock hold around the $3 area. We like this stock but the risk / reward is not compelling around current levels.

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