ERA – UBS rates the stock as Sell

By Broker News | More Articles by Broker News

Weak fundamentals remain a headwind for the stock but legacy contracts are envisaged supporting the stock. The broker lowers uranium price forecasts for the next 12 months.

September quarter uranium production improved to 666 tonnes, ahead of UBS estimates, as a result of higher throughput. This lifts estimates and reduces the broker’s forecast loss for 2016 to -$40m.

UBS retains a Sell rating and reduces the target to 9c from 10c.

Sector: Energy.

Target price is $0.09.Current Price is $0.35. Difference: ($0.26) – (brackets indicate current price is over target). If ERA meets the UBS target it will return approximately -289% (excluding dividends, fees and charges – negative figures indicate an expected loss).

Broker News

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →