Iluka Resources shares plunge as analysts trim forecasts
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The news: Shares in Iluka Resources plunged on the ASX in early trading, a day after the mineral sands miner reported a hit to first-half earnings, as analysts trimmed their forecasts on the stock.
The numbers: Iluka shares fell 5.3% to $5.86 by 12:10pm AEST, making it the worst performing stock across the ASX 200, having closed 0.65% higher on Tuesday after the results were released.
Macquarie maintained its 'neutral' rating and $7 target price on Iluka but cut its CY24 earnings per share forecast by 9% following the Q2 result.
Citi kept its 'buy' rating, but trimmed its CY24 EBITDA (-9%) and underlying profit (-10%) estimates.
UBS maintained its 'neutral' rating but slashed its price target by 8% to $7.05.
The context: Macquarie analysts said that while Iluka's Q2 sales results were soft, they saw emerging demand for synthetic rutile. A spend slowdown at the miner's Eneabba refinery is also a positive, they noted.
Citi analysts made minor changes to their forecasts following Iluka's Q2 result, weighing quarterly sales, that came in 12% lower than Citi's estimates, against an improving zircon price.
UBS analysts said that a mixed mineral sands outlook, combined with increased risk around the Eneabba project, contributed to their reduced price target.
The sources: UBS research, Citi research, Macquarie research
