That's the view of the team at Bell Potter, which has reiterated its buy rating on the ASX 200 mining share this morning.
What is the broker saying about this ASX 200 mining share?
Bell Potter was pleased to see that Nickel Industries has completed the placement of 857 million shares to United Tractors subsidiary PT Danusa Tambang Nusantara at $1.10 per new share.
It notes the "placement price represented a 27% premium to NIC's share price at the time of the deal and now a 41% premium to NIC's last closing price."
It feels that the premium paid represents "a strong endorsement of NIC's assets, management and strategic objectives." In addition, it notes that "as a partner, UT brings significant local expertise and potentially favourable access to domestic debt funding."
According to the note, the broker has retained its buy rating and $1.64 price target on the ASX 200 mining share. Based on its current share price of 78 cents, this implies a potential upside of 110% over the next 12 months.
All in all, the broker believes Nickel Industries' shares are great value given its positive earnings outlook. It concludes:
NIC is trading on an undemanding EV/EBITDA multiple of 5.8x for CY23 (attributable basis) and is increasingly leveraged to its EBITDA margins as production volumes grow and input costs subside. NIC has also demonstrated it makes money through the cycle and we see significant potential earnings upside as market conditions improve. Retain buy.