Iofina (IOF)

Sector:

Industrial Chemicals

Index:

FTSE AIM All-Share

 22.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 36.00
  • 52 Week Low: 21.00
  • Currency: UK Pounds
  • Shares Issued: 191.86m
  • Volume: 178,105
  • Market Cap: £42.21m

Canaccord Genuity initiates coverage on Iofina at 'buy'

By Iain Gilbert

Date: Monday 21 Nov 2022

LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity initiated coverage on specialty chemicals group Iofina at 'buy' on Monday as it pointed to a "strong return profile ahead".
Canaccord said Iofina's vertical integration gave it a "significant cost advantage" over competing iodine suppliers, which were primarily in Chile. It also said Iodine has "attractive long-term growth characteristics" and was currently experiencing "significant supply tightness".

"We expect this to continue well into 2023, and potentially beyond, allowing Iofina to benefit from premium returns," said Canaccord.

The Canadian bank believes Iofina's "successful transition" to being not only free cash positive, but also its "exceptionally robust balance sheet", was underrated in the market.

Canaccord Genuity started the stock off with a 35.0p target, based primarily on multiples, meaning the stock would trade at 13x/15x 2023E/24E price-to-earnings ratio at its target price.

"We believe earnings for FY22E are likely to be in the range of EBITDA $8.5-9.5m; we expect FY23E to be somewhat stronger due to the mix of lagged contract pricing, improved cost recovery, and some volume increase from the 1H23 start-up of IO#9. The group is not wasting current profits and is investing in chemical as well as further IOsorb plants. It has been free cash generative throughout the past five years and we expect will be able to continue this record over the next three years," said the analysts.





Reporting by Iain Gilbert at Sharecast.com

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Iofina Market Data

Currency UK Pounds
Share Price 22.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 36.00
52 Week Low 21.00
Volume 178,105
Shares Issued 191.86m
Market Cap £42.21m

Iofina Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
84.26% above the market average84.26% above the market average84.26% above the market average84.26% above the market average84.26% above the market average
87.50% above the sector average87.50% above the sector average87.50% above the sector average87.50% above the sector average87.50% above the sector average
Price Trend
18.51% below the market average18.51% below the market average18.51% below the market average18.51% below the market average18.51% below the market average
33.33% above the sector average33.33% above the sector average33.33% above the sector average33.33% above the sector average33.33% above the sector average
Income Not Available
Growth
73.21% above the market average73.21% above the market average73.21% above the market average73.21% above the market average73.21% above the market average
88.89% above the sector average88.89% above the sector average88.89% above the sector average88.89% above the sector average88.89% above the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Iofina Dividends

No dividends found

Trades for 28-Mar-2024

Time Volume / Share Price
16:27 10,000 @ 21.94p
15:45 7,393 @ 22.25p
15:40 4 @ 23.00p
15:40 100 @ 21.00p
15:37 50,000 @ 21.40p

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