JPMorgan lifts Iluka Resources stock rating to Overweight

Published 16/04/2025, 14:12
JPMorgan lifts Iluka Resources stock rating to Overweight

On Wednesday, JPMorgan analyst Al Harvey upgraded Iluka Resources Ltd (ILU:AU) (OTC: ILKAF) stock from Neutral to Overweight, adjusting the price target to AUD4.75, up from the previous AUD4.50. Harvey’s decision follows Iluka’s recent performance and future project developments, suggesting a positive outlook for the company.

In the MarQ25 report, Iluka’s mineral sands revenue reached $260 million, falling 6% short of JPMorgan’s estimates. Despite this, production volumes exceeded expectations by 9%, although sales volumes were 3% below projections. On the market side, zircon pricing appears to have stabilized, with Iluka securing better-than-expected volumes for the second quarter.

The company is also making strides in its project pipeline. The Balranald project is on track for commissioning in the second half of 2025, while construction for the Eneabba rare earth refinery has begun. Additionally, Iluka is in the process of securing a lead engineering contractor for the Wimmera study, expected to be announced in June 2025.

Despite uncertainties stemming from Trump’s policies that may affect growth prospects, Harvey sees the current stock price as an attractive entry point for investors with a long-term perspective. The upgrade reflects confidence in Iluka’s potential for growth and the progress of its strategic initiatives.

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