Target $18.50 (was $19.30). March quarter production was weak as the company processed low grade stockpiles due to heavy rains. Guidance for the June quarter was also weak and so the broker has lowered its earnings forecasts.
With lower estimates in place the broker reduces its price target on the stock, while also noting dividends this year will come down thanks to a lower level of cash generation.
Rating downgraded to Underperform.
Target price is $18.50.Current Price is $18.52. Difference: ($0.02) – (brackets indicate current price is over target). If ERA meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).