First Look Corporate: NIKL

We recommend a BUY on NIKL and upgrade Target to P43.10/share as we upgrade FY2014/FY2015 Earnings forecasts. 1H2014 Net Income+419% to P3.3b as shipment outperforms expectations and the company improves operational efficiency ahead of a seasonally stronger 2H2014. Outlook for nickel prices remain positive as Indonesia ore ban stays in place after surge in investment in processing plants. (See page 2 for more details on Indonesia ore ban). NIKL reveals push towards Renewable Energy Projects.

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