Morgan Stanley upgrades Iluka Resources Limited (ILKAF) to a Buy
In a report released today, Rahul Anand from Morgan Stanley upgraded Iluka Resources Limited (ILKAF – Research Report) to a Buy, with a price target of A$3.50. The company's shares closed last Wednesday at $2.49.
Confident Investing Starts Here:
Anand covers the Basic Materials sector, focusing on stocks such as Rio Tinto Limited, Iluka Resources Limited, and Evolution Mining . According to TipRanks, Anand has an average return of 5.9% and a 48.00% success rate on recommended stocks.
Iluka Resources Limited has an analyst consensus of Moderate Buy, with a price target consensus of $3.36, which is a 35.10% upside from current levels. In a report released on May 14, Citi also upgraded the stock to a Buy with a A$5.20 price target.
Based on Iluka Resources Limited's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $540.6 million and a net profit of $97.6 million. In comparison, last year the company earned a revenue of $545.6 million and had a net profit of $138.8 million
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
20 minutes ago
- Business Insider
Morgan Stanley shares a chart that fuels the argument for new stock-market highs
Morgan Stanley is growing more optimistic about the stock market as earnings revisions breadth improves. Improving breadth is being driven by more upward revisions, the bank said. The market is likely to overlook softer hard data in favor of forward-looking views of strong earnings. The vibes in the stock market are improving, and it's boosting the case for prices to rise from here. That's according to a note from Morgan Stanley's Mike Wilson. The bank's CIO and chief stock strategist pointed to a key signal that's sending a bullish signal: a sharp rebound in earnings revisions breadth, or the proportion of analysts who have raised their estimates minus the proportion who have lowered them. The indicator is now at -10%, a noticeable improvement from -25% during the height of tariff uncertainty in April, an indication that sentiment is recovering. The bank believes the indicator will continue to trend upward. A weak dollar could further bolster this earnings gauge, as US companies that do a lot of business overseas receive a boost in sales when the dollar is weaker. Once earnings revisions breadth turns positive, investors should expect forward EPS predictions to trend higher. Earnings revision breadth can be driven by either fewer downward revisions or more upward revisions. According to Morgan Stanley, the latter is the case today, which is good news for investors. More upward revisions tend to result in stronger overall stock market performance, historically leading to a 13% increase in the S&P 500 over a 12-month span. When fewer downward revisions are the driving factor, the S&P 500 has historically returned 8% over the next 12 months. Morgan Stanley's 12-month price target for the S&P 500 is 6,500, a potential gain of 8% from current levels. Investors should pay more attention to the improvement in forward-looking earnings revision breadth rather than lagging hard data, according to Morgan Stanley. The bank sees April stock market lows as the end of a year-long trend of downward earnings revisions, and expects the rate of change on earnings revision breadth to be the primary driver of equity prices going forward. "In our experience, when revisions breadth is accelerating in a V-shaped manner from an extreme low, equity markets typically remain supported and pullbacks remain shallow and unsatisfying (like the past 6 weeks)," Wilson wrote. The recent outperformance of cyclical stocks also points to a market more focused on forward-looking earnings revisions than backward-looking hard data. These areas of the market are especially sensitive to economic growth and earnings, and they're picking up momentum and providing a tailwind to the overall stock market. While it's possible that inflation could creep up over the summer as the pull-forward effect of tariffs fades, Morgan Stanley believes the bulk of the tariff pain appears to be already priced in following the April 2 tariff announcements. Policy headwinds should ease soon, as Trump's term began by front-loading disruptive tariff policies and will transition to more pro-growth initiatives like deregulation and tax cuts. Over the last month, the market has has rallied over 20% from April lows despite a first quarter GDP contraction weakening manufacturing data. As long as earnings revisions breadth continues trending upwards, Morgan Stanley believes the stock market will continue to overlook short term weakness in hard data.
Yahoo
30 minutes ago
- Yahoo
The bull case for stocks is growing among Wall Street strategists
Wall Street strategists aren't scared of a summer slowdown for stocks despite some indications of a cooling labor market and slowing economic activity. In the past month, several strategists have defended their S&P 500 year-end targets in the range of 6,300 to 6,500, noting that the most dire outcomes from tariffs may no longer be on the table. On Monday, the benchmark index was trading around 6,010, about 2% from the record closing high. In a note titled "Don't fight it," Morgan Stanley chief investment officer Mike Wilson pointed out that a "moderate slowdown in growth" was likely already priced in earlier this year when the average S&P 500 stock fell nearly 30%. "In our experience, stocks and equity market internals move well ahead of lagging economic data and earnings results," Wilson said. To be clear, there are certainly signs of softening in economic data. Last week, ADP data showed that the private sector added 37,000 jobs in May, the lowest monthly total in more than two years. Weekly filings for unemployment claims hit their highest level since October 2024. And monthly nonfarm payroll revisions revealed 95,000 fewer jobs were added in March and April than initially thought. But the slowdown in this data has been widely expected. The equity research team at Goldman Sachs analyzed prior "event driven recessions" such as the bursting of the dot-com bubble and the 1970s interest rate shock. Goldman's team, led by chief US equity strategist David Kostin, found that so-called soft economic data, which encapsulates data points like consumer surveys, usually hits its cycle bottom before hard economic data, like monthly readings on inflation or job additions, does. That's been playing out over the past month. In May, the Conference Board's future expectations index saw its largest monthly increase since May 2009. But data on Monday showed inflation expectations in the New York Federal Reserve's monthly survey moved lower in May for the first time this year, perhaps marking that the worst tariff-driven inflation fears might be behind markets too. Read more: How to protect your savings against inflation Kostin's work shows the S&P 500 typically will follow the soft data's return higher, even if hard economic data, like monthly jobs reports, continues to move lower. "S&P 500 returns are currently more correlated with soft data than hard data," wrote Kostin, who projects the S&P 500 will hit 6,500 in the next 12 months. "If the recovery in soft data is sustained, it should support equity returns even as hard data weaken." Citi equity strategist Scott Chronert boosted his S&P 500 target to 6,300 on Monday from a prior forecast of 5,800. Chronert, like other strategists, pointed out that peak tariff uncertainty has likely passed following the pause on duties between the US and China. With that headwind easing, Chronert pointed out that economic growth forecasts are no longer falling either. After tumbling to a recent bottom of 1.35% in early May, consensus is now projecting the US economy to grow at an annualized pace of 1.4% in 2025. Chronert and other strategists agree that the key risk moving forward would be that economic growth data slows more than consensus is now expecting. But barring that outcome, Chronert likes growth stocks such as Big Tech names amid a market environment that features elevated interest rates and high stock valuations. "Our growth preference continues for now as the AI theme regains momentum," Chronert wrote. Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer. Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
Wall Street's $500M Gold Heist: How Top Banks Exploited a Rare Market Glitch
Wall Street's commodity traders just pulled off a classic playbook moveand it paid handsomely. In Q1 2025, top banks including JPMorgan (NYSE:JPM) and Morgan Stanley hauled in around $500 million in revenue from precious metals trading, according to data from Crisil Coalition Greenwich. That figure is nearly double their decade-long quarterly average and ranks as one of the highest in ten years. What sparked the surge? An unusual arbitrage opportunity: gold and silver prices on the US Comex exchange shot above those in global hubs like London and Hong Kong. That gap opened the door for traders to buy low overseas and deliver into US futures contracts at a premium, just as fears over incoming tariffs on bullion hit the market. Morgan Stanley delivered 67 metric tons of gold to settle its proprietary Comex positionsthe most of any bankvalued at roughly $7 billion based on current prices. JPMorgan wasn't far behind, moving more than $4 billion worth of gold to settle February futures in one of the largest delivery days on record. The flurry of activity began to cool in April after the US government clarified that bullion would be exempt from President Donald Trump's proposed tariffs. But the damageor rather, the profitwas done. Much like in 2020, when the pandemic disrupted logistics and created another arbitrage window, banks with the operational muscle to execute physical trades found themselves in the driver's seat. For investors, this quarter may offer more than just impressive P&Ls. It's a reminder of how quickly geopolitical uncertainty can reshape commodity marketsand create asymmetric opportunities for the players who move fast. While the window may have closed for now, the surge in physical deliveries highlights how nimble trading desks are still thriving in old-school ways. As tariff talk, election noise, and macro shocks swirl around global markets, don't be surprised if this isn't the last time physical arbitrage drives headlinesand results. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
