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Investing.com - BofA Securities has upgraded Nickel Asia Corp (NIKL:PM) from Underperform to Neutral and raised its price target to PHP3.15 from PHP2.64, representing a 19% increase.
The upgrade is based on several factors, including the sustainability of exports to Indonesia for at least five years alongside raw nickel ore exports to China, and expectations of higher export prices as demand increases.
BofA Securities has increased its Shanghai Metal Exchange-based FY26E export price assumptions to US$40/WMT from US$25/WMT, and raised its FY25E/26E net profit estimates by 11% and 13% to PHP2.6 billion and PHP2.7 billion, respectively.
The firm’s Neutral rating reflects improved 2025-27E earnings estimates, supported by new exports to Indonesia and moderate undervaluation compared to global peers, with Nickel Asia currently trading at 14x FY26E PER.
BofA Securities also factored in funding for Nickel Asia’s renewable energy projects scheduled to begin in 2026, which is a 60:40 joint venture with Shell Investments, B.V.
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