finnCap Research Company Notes - 20 December 2019
Dec 20, 2019 / News
Register here to access all finnCap corporate finance research
Sector: Energy
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
finnCap operates an ‘access-for-all’ approach for corporate research, approved by the FCA and paid for by finnCap’s corporate clients.