Macquarie rates the stock as Upgrade to Neutral from Underperform
Medusa’s long awaited update on reserves and resources at the Co-O mine sees a 22% fall in the former and 36% in the latter, which is actually a better result than the broker had forecast. Meanwhile, MML’s production remains on track with guidance.
The release of the update has now removed a major negative for the stock, the broker suggests, which has fallen 57% in FY15 to date. Achieving production guidance will be critical but with the share price having accounted for the fears, the broker now upgrades to Neutral. Target falls to 90c from $1.00.
Target price is $0.90.Current Price is $0.82. Difference: $0.09 – (brackets indicate current price is over target). If MML meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).