The first half result was softer than Morgan Stanley expected but the capital raising indicates Incitec Pivot is able to withstand the uncertainty over the short term.

Fertiliser earnings (EBIT) was lower than Morgan Stanley expected while Dyno Nobel business in the Americas and Asia Pacific was broadly in line.

Equal-weight. Cautious industry view. Target is reduced to $2.00 from $2.70.

Sector: Materials.

Target price is $2.00.Current Price is $2.19. Difference: ($0.19) - (brackets indicate current price is over target). If IPL meets the Morgan Stanley target it will return approximately -9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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