Iluka Resources (ILU) Shares Recommendation

SB Citigroup have upgraded their stock rating for Iluka Resources (ILU) from Hold, High Risk to Buy. The rating for the company was lifted as a result of ongoing strength in zircon prices as well as the upcoming completion of the Murray Basic project - both factors that the broker sees as positive. Meanwhile, the broker has cut its profit forecasts for 2007 by 19 percent to $150m and in 2008 by 12 percent to $210 million though to reflect higher input costs and delays to the second Murray Basin mine. In its view the company remains a likely acquisition target, while upside to its $8.80 valuation comes from the zircon price and exploration potential.

Iluka Resources Limited is listed on the Australian Stock Exchange (ASX) under stock code ILU. You can view their investor website here. Check your charts!