SAR – Citi rates the stock as Buy

The title above today’s initiation report gives it all away: "The new mid-tier gold miner". Citi analysts forecast strong YoY FY17 growth for revenues and profits. And growth is expected to continue in FY18/19/20 carried by expanded production and multiple new mines.

All-in costs (AISC) are projected to fall below A$1,100/oz in FY18. Initiation of coverage with Buy rating and price target of $1.25.

Citi expects Thunderbox to lift group production to a rate of 300kozpa by MarQ 2017.

Sector: Materials.

Target price is $1.25.Current Price is $1.06. Difference: $0.19 – (brackets indicate current price is over target). If SAR meets the Citi target it will return approximately 15% (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 →