SAR – Macquarie rates the stock as Downgrade to Neutral from Outperform

Saracen has provided a strong exploration update featuring positive drilling results in all areas, Macquarie notes. The broker anticipates mine life extension at Deep South and expects Thunderbox to accelerate now underground drilling is underway.

An improved earnings outlook sees Macquarie’s target rise to $2.60 from $2.50 but current valuation leads to a pullback to Neutral from Outperform.

Sector: Materials.

Target price is $2.60.Current Price is $2.37. Difference: $0.23 – (brackets indicate current price is over target). If SAR meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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