Highlights

  • Refinitiv and broker targets ranging from AUD 1.10 to AUD 1.30 suggest around 20% upside from recent trading levels.
  • Nickel futures have hovered near 19-month highs amid concerns over Indonesian ore supply and pending production approvals.
  • The ENC strategic partnership introduces aerospace-linked offtake exposure while maintaining Nickel Industries’ ownership position.

Nickel Industries Limited (ASX:NIC) has come into focus as analysts point to upside potential of about 20%, supported by broker targets and higher nickel futures. As of 15 January, the stock closed 2.19% higher at AUD 0.94 per share, while Refinitiv data shows a consensus target price of AUD 1.11.

Market attention is also centred on Indonesian supply dynamics and new offtake arrangements tied to aerospace demand.

Broker Targets Point to Upside

Refinitiv data indicates a consensus “buy” rating for Nickel Industries, with a target price of AUD 1.11. This implies an upside of roughly 18%–20% from the recent closing price of AUD 0.94 per share.

Institutional brokers have also reiterated positive views. Jefferies has issued a buy rating with a target price of AUD 1.10 per share, while Bell Potter Securities (Institutional) has set a higher target of AUD 1.30 per share. These targets place the stock above current trading levels, contributing to expectations of price movement over the near to medium term.

Nickel Industries is an ASX-listed company with a portfolio of mining and low-cost downstream nickel processing assets. Its production is directed toward the stainless steel sector and the electric vehicle supply chain, both of which remain key sources of global nickel demand.

Nickel Futures Near 19-Month Highs

Nickel futures have reinforced optimism for the stock. According to Trading Economics data, nickel futures were trading around USD 18,300 per tonne, remaining close to recent peaks after touching about USD 18,700 on 14 January, a level last seen more than 19 months ago.

Market participants continue to track Indonesian ore supply conditions. Expected 2026 ore quotas are estimated at 250–260 million tonnes, well below domestic smelter demand and last year’s 379 million tonnes target. In addition, final approvals for miners’ annual production plans (RKABs) are still pending. These factors have contributed to tighter supply expectations, which have supported refined nickel prices despite some recent easing.

Demand from Chinese stainless steel producers and electric vehicle battery manufacturers has also remained a key factor influencing price levels.

Strategic ENC Update Adds New Dimension

On 2 January, Nickel Industries announced an update involving its ENC HPAL project. Sphere Corp., a South Korean KOSDAQ-listed premium alloy and precision materials manufacturer, agreed to acquire a 10% interest in the ENC project at a valuation of USD 2.4 billion.

Sphere is a supplier of special alloys to aerospace companies, including SpaceX, with a recently announced 10-year supply contract valued at around USD 1 billion. Under the agreement, Sphere will offtake its 10% share of nickel as cathode and has entered into a market-priced offtake arrangement for additional volumes above its ownership share.

Nickel Industries’ shareholding in ENC remains unchanged, with the transaction implemented through Decent Resource reducing its stake. Funding is expected to complete in early Q1 2026.