Asia stocks rise: Japan surges on Takaichi bets, China buoyed by positive GDP
Investing.com - JPMorgan has downgraded Iluka Resources Ltd (ASX:ILU) (OTC:ILKAF) from Overweight to Neutral while raising its price target to AUD7.25 from AUD6.75.
The downgrade comes after Iluka reported a soft quarter for sales volumes, with the mineral sands markets remaining challenging. According to JPMorgan, both zircon/rutile/synthetic rutile production and mineral sands revenue missed the firm’s estimates by nearly 50%.
Iluka has withdrawn its synthetic rutile guidance for 2025 and indicated potential volume risks for 2026 and 2027, adding uncertainty to the company’s near-term outlook.
While commissioning at the Balranald project remains on track, JPMorgan notes this development brings potential execution risks to the forefront for the mining company.
Despite the downgrade, JPMorgan still considers Iluka its preferred exposure for investors looking to play the rare earths sector, but issued the rating change as the stock is currently trading ahead of the firm’s AUD7.25 price target.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.