We suggest accumulating IPL shares at current levels following the recent Algo Engine buy signal at $3.30.
The stock is a current holding within the ASX 50 model portfolio.
This week IPL announced the mitigation to a recent a contract loss, through a new contract with Fortescue.
IPL stated that the FMG contract would mitigate ~50% of the financial impact associated with previously announced contract losses in Western Australia.
We forecast FY19 EPS growth of 10%, placing the stock on a forward yield of 4.3%.