Agriculture
July 10, 2015
The Warsaw-listed IMC stock’s current price of PLN 4.50 is now near its all-time low. Although bearish investors can argue that the company’s net loss for FY14/1Q15, the breach of its debt covenant, and low grain prices justify this situation, we find that such arguments ignore the company’s overall positive investment story. Given our conservative 2015 EBITDA projection for IMC of USD 51mn, no exposure to Donbass/Crimea, quality corporate governance, and ongoing leverage reduction, we see the potential of a more than doubling in the oversold IMC stock price in the near term.
