Citi has upgraded IGO Limited to a “neutral” rating from its previous “sell” recommendation. This decision follows a 19 per cent decline in IGO’s share price over the past month. IGO Limited is an Australian mining and exploration company focused on metals critical to clean energy. The company explores for nickel, copper, cobalt and lithium.
According to Citi analyst Kate McCutcheon, IGO’s capital expenditure guidance of $575 million to $675 million for fiscal year 2026 lacks transparency. The report questions how much of this spending may extend into fiscal year 2027, creating uncertainty around future financial commitments. The upgrade suggests a more balanced outlook on the stock’s potential performance in the near term.
Despite the upgrade, Citi has indicated a continued preference for Pilbara Minerals within the ASX 200 lithium sector. This suggests that while IGO’s stock may have stabilised, other lithium producers are viewed more favourably by the firm. Investors will be watching closely how IGO manages its capital expenditure over the next few years.
