Incitec Pivot's FY20 operating income was up 23% versus last year but -11% less than Morgan Stanley's forecast. While the fertiliser and Dyno Nobel Asia Pacific businesses were in line, Dyno Nobel Americas missed the mark due to decline in coal volumes.

Morgan Stanley is disappointed by the result and notes better commodity prices are the key to more upside for Incitec Pivot.   

Equal-weight rating. Target rises to $2.45 from $2.25. Industry view: Cautious.

Sector: Materials.

Target price is $2.45.Current Price is $2.09. Difference: $0.36 - (brackets indicate current price is over target). If IPL meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2020 Acquisdata Pty Ltd., source FN Arena