IGO Limited downgraded to Sell from Hold at Canaccord

Canaccord downgraded IGO Limited to Sell from Hold with a price target of A$14.25, up from A$14. IGO has advised it intends to record a non-cash impairment expense of A$880M-980M from the A$1.3B purchase of Western Areas due to higher capex and opex, mine schedule issues and delays in Cosmos development while the Cosmos guidance has also been withdrawn, notes the analyst, who finds it unlikely IGO will continue its aggressive approach to M&A with “what now looks like an expensive acquisition,” despite needing to reshape its business.