Shares in explosives manufacturer and distributor Incitec Pivot Ltd (ASX: IPL) are on the slide today, down 1.7% to $3.47 at the time of writing – signalling buy time according to Ord Minnett.
Incitec Pivot is on Ord Minnett's buy recommendation list at present after the company demonstrated solid performance in its half-year reports earlier this month as strong demand in the sector is expected to drive growth.
The broker thinks earnings at the US-based Waggaman facility is likely to be behind the push upwards, coupled with a recently-announced share buyback out of the company.
Incitec owns and operates manufacturing plants for explosive devices, industrial chemicals and fertilisers with plants in Australia, Canada, Turkey, Mexico, Chile and Indonesia.
It's hard to find a direct peer for Incitec, but there are some crossovers in offerings out of the likes of industrial and specialty chemical producer and commercial explosives manufacturer Orica Ltd (ASX: ORI) whose shares are also down 0.7% at the time of writing to $17.94.
Orica's diversified offerings mean it also comes up against mining sector peers like BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) both of which are also on the decline today with BHP down 0.6% to $33.72 and Rio down slightly to $84.91.
