Iofina (IOF) : Corp

Trading update

Key data

  • Share price (p) 27.1
  • Target price (p) 35.0
  • Market cap (£m) 52.1
  • Enterprise value (£m) 58.2

Iofina’s trading update confirms it is executing well on its dual iodine/CBD strategy, with construction of the IO#8 iodine plant and its organic hemp seed manufacturing facility progressing well, alongside encouraging progress from its CBD extraction research. Iodine volume growth into a strengthening market together with the emergence of potential high-margin CBD opportunities sets Iofina up for another record year in 2020. Management is also confident of achieving a debt restructuring solution in H1 2020. We estimate Iofina is trading at 6.4x 2021e EV/EBITDA, which we view as undemanding given the scope for iodine price/CBD related earnings upgrades over that time frame.

Jonathan Wright 020 7220 0543 jwright@finncap.com

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