Iofina (IOF) : Corp

Q3 trading update

Key data

  • Share price (p) 24.3
  • Target price (p) 35.0
  • Market cap (£m) 46.5
  • Enterprise value (£m) 52.8

Another solid quarter from Iofina that puts it on track to deliver record iodine production this year. Iodine prices continue to rise, which should also drive record revenue and earnings for the company this year. Its new IO#8 plant is under construction and is on track to give production another leg up in H1 2020. Specialty chemicals are also performing well, with margins benefiting from the stronger iodine price. Investors may have been hoping for a more detailed CBD update, but it remains early days in this journey. The shares have pulled back almost 20% in the past month on the back of profit taking and difficult equity markets. We believe this offers an excellent buying opportunity for a stock that is delivering on its growth strategy into a rising iodine market and has attractive optionality around expansion into the high growth/margin CBD market.

Jonathan Wright 020 7220 0543

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