IGO shares lift as Citi analysts upgrade rating
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The news: Shares in IGO gained in afternoon trade as Citi analysts upgraded their recommendation from ‘sell’ to ‘neutral’ on valuation grounds after a recent decline in the critical mineral miner's share price.
However, Citi and Jarden analysts both retained Pilbara Minerals as their preferred lithium exposure.
The numbers: At 3:08pm AEST, shares in IGO had lifted by 5% to $4.56. Meanwhile, Pilbara Minerals had lifted 8.1% to $2.14.
In a note issued before market open, the Citi analysts upgraded their valuation as IGO’s share price had dipped below Citi’s target price of $4.40 per share.
Jarden analysts have reiterated their overweight rating on the stock although they slightly cut their target price from $4.88 to $4.84.
The context: The Citi analysts said “to become more positive” they are looking for “visibility” on an exit from the Kwiniana lithium hydroxide run by joint venture Tianqi Lithium Energy Australia, flagging that IGO’s share of capital spend and earnings losses to date is more than $400 million. However, the analysts flagged that their preferred lithium exposure is still Pilbara Minerals.
The Jarden analysts similarly said they “are looking for improvements to the [Tianqi Lithium Energy Australia] joint venture”.
The sources: Citi research, Jarden research
