Tag: ASX:IPL

In mid-2017, our Algo Engine generated a buy signal in IPL and more recently we reaffirmed the entry into IPL when the stock looked to be finding support near $3.40 range. 

Since then, IPL has rallied 8% and is now closing in on our $3.70 price target. The short term momentum indicators are also now approaching an overbought range. 

IPL goes ex div 5 cents on the 23rd of November. Selling $3.70 September  call options will add an additional 11 cents of income per share.

IPL

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%.

IPL

Our Algo Engine generated a  buy signal recently in IPL and the stock is currently held in the ASX top 50 model.

The stock price has pulled back to form a “higher low” at $3.30 and we see forward earnings surprising to the upside, due to the finalization of the Gibson Island gas agreements and the recent recovery in global nitrogen prices. 

IPL is also set to recommence a $300m share buyback.

IPL reports 1H18 earnings  on 9 May.

A key focus in the upcoming result will be the production performance at key locations & progress on formalising the Central Petroleum interim
gas agreement for Gibson Island and gas discovery JV.

IPL was added to our ASX50 model portfolio in May 2017.

Commodities are going through a topping pattern, or at least building resistance at the current level, we encourage investors to take profit in IPL.

2019 EPS $0.23, DPS $0.12 places IPL on a forward yield of 3%.

IPL

Our Algo Engine recently triggered a  buy signal in IPL, and with the stock now retesting the $3.50 low, we consider this a buy opportunity.

Nitrogen based fertiliser prices progressively weakened through the 1Q, which helps explain the recent share price weakness, however, phosphate prices have proven more resilient and IPL will also benefit from the lower US corporate tax rate.

Spot DAP prices at US$410/t are above most analysts financial model forecasts and with IPL’s earnings growth accelerating out into FY20, the stock now trades on FY20 yield of 5%.

FY20 revenue $3.6 billion, EBITDA $990 million and EPS $0.30. 

IPL

We forecast $400+ million  in reported profit for FY17, up from $350 million in FY16.

Global fertilizer prices continue to push higher and an improved demand/supply situation is helping to sustain the rally in IPL’s share price.

The stock is now close to full value and has rallied 20% since the Algo Engine buy signal back in July at $3.25.

IPL reports earnings on Tuesday the 14th of November.

IPL

On August 5th, we posted a buy signal on IPL at $3.20. Since then the stock has traded as high as $3.72, but slipped lower into the weekend.

One of the market stories supporting IPL has been that company officials have been actively buying shares, which is usually a good reflection of the company’s earnings and growth outlook.

More importantly, analysts’ earnings growth expectations of 90% over the next three years also illustrates a buoyant outlook for the business.

We still prefer the long side of IPL and suggest that investors could look to buy a pullback into the $3.45 support level.

Incitec Pivot

Our Algo Engine recently triggered a buy signal in IPL. With the stock price now beginning to see buying interest at or near $3.20, (as the “higher low” formation develops), we recommend investors continue to hold the long exposure.

Consider stop losses below the $3.20 level.

Chart – IPL