IGO shares rebound as Macquarie hikes target price
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The news: IGO was one of the best performers on the ASX 200 on Friday, after Macquarie hiked its target price on the critical minerals producer.
The numbers: IGO shares were up 2.7% to $4.55 at 1:50pm AEST. The rally followed a two-day selloff which began after the company issued a warning over operations at its Kwinana lithium hydroxide refinery.
Macquarie retained its 'outperform' rating on the stock and raised its target price by 11% to $5.
The context: Macquarie's analysts said IGO had a mixed fourth quarter, as production missed estimates but sales and earnings came in ahead of forecasts.
What they said: "We think a lower return threshold, a focus on productivity, and symbolic impairment of Kwinana all pave the way for a focus on shareholder returns while it navigates market volatility," they said.
The source: Macquarie research
