NCM – Macquarie rates the stock as Underperform

By Broker News | More Articles by Broker News

Newcrest Mining’s FY18 earnings outpaced the broker by 10%, although production and cost guidance disappointed. Cash flow met guidance.

Macquarie downgrades FY19 gold and copper production forecasts by -2% and -5% and raises AISC forecast 7%. Updated guidance on grades at Cadia and Telfer triggered a -5% cut to the FY20 gold and copper forecasts.

The broker reduces FY19 and FY20 earnings forecasts by -14% and -26%, while FY21 and FY22 fall -2% and -27%.

Price target falls to $18 from $20 and Underperform rating retained.

Sector: Materials.

Target price is $18.00.Current Price is $20.25. Difference: ($2.25) – (brackets indicate current price is over target). If NCM meets the Macquarie target it will return approximately -12% (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 →